Spirit Airlines Reports Third Quarter 2023 Net Loss of $157.6 Million or $1.44 per diluted Share
Spirit Airlines has reported a third quarter net loss of $157.6 million or ($1.44) per diluted share on a year-over-year decrease in revenue of 6.3 percent to $1.26 billion. At September 30, 2023, the carrier had total liquidity of $1.2 billion.
On Thursday (October 26, 2023), Spirit Airlines reported their third quarter financial results for the period ending September 30, 2023. The carrier reported a third quarter net loss of $157.6 million or ($1.44) per diluted share on a year-over-year decrease in revenue of 6.3 percent to $1.26 billion. Spirit’s Q3 total revenue per available seat mile (TRASM) declined 17.4 percent compared to Q3 2022 to 9.14 cents, while cost per available seat mile (CASM) decreased 7.6 percent compared to the same period last year to 10.51 cents. The airline’s adjusted costs excluding fuel (CASM-ex) increased year-over-year by 5.0 percent to 7.13 cents. At September 30, 2023, Spirit Airlines had cash, cash equivalents, short-term investment securities and liquidity available under the company’s revolving credit facility of $1.2 billion.
In Thursday’s announcement, Spirit Airlines’ President and Chief Executive Officer, Ted Christie, said,
“Softer demand for our product and discounted fares in our markets led to a disappointing outcome for the third quarter 2023. We continue to see discounted fares for travel booked through the pre-Thanksgiving period. And, unfortunately, we have not seen the anticipated return to a normal demand and pricing environment for the peak holiday periods. Given these continued trends, we are evaluating our growth profile and our competitive position. We have already taken the first steps by modifying the cadence of our aircraft deliveries through the end of the decade and slowing our capacity growth in the near term.
“We continue to believe merging with JetBlue and creating a viable competitor to the Big Four US airlines is in the best interest of consumers, Team Members, and shareholders. We are prepared to make the necessary strategic shifts to enable Spirit to compete effectively in this new demand backdrop. Our Team Members are among the best and most innovative in the industry. I am confident that whether the Spirit of tomorrow is different from today or whether the aircraft tail says JetBlue or Spirit, their dedication to take care of our Guests and each other will not change.”
Also commenting on the airline’s disappointing third quarter results, Spirit Airlines’ Chief Financial Officer, Scott Haralson, added,
“In addition to a softer-than-expected demand environment, we continue to be challenged by higher fuel prices and NEO engine availability issues and are expecting our margins in the fourth quarter will be lower than we reported for the third quarter 2023. We recognize this financial performance is not acceptable, and we are taking action. In addition to evaluating different strategies to drive higher revenue per departure, we have identified $100 million of structural cost reductions and are evaluating how best to capture those savings in 2024. Our team is resilient and nimble, and we are committed to returning Spirit to sustained profitability.”
During the third quarter, Spirit took delivery of three new Airbus A320neos and five new A321neos, while retiring four Airbus A319ceos. The carrier ended the period with a total fleet of 202 aircraft. Spirit's total third quarter CAPEX was $209.1 million, primarily related to the construction of the airline’s new Dania Beach, Florida headquarters and campus, along with the purchase of spare parts, including four spare engines.
On March 7, 2023, the U.S. Justice Department filed suit to block the merger of Spirit Airlines and JetBlue, and the trial is scheduled to begin on October 31, 2023. Pending a successful result and regulatory approvals, the airlines expect the transaction to close no later than the first half of 2024
Miramar, Florida-based low-cost carrier Spirit Airlines (NYSE: SAVE) is committed to offering the best value in the sky with service to nearly 100 destinations in the U.S., Latin America, and the Caribbean. The airline allows customers to select and pay for only the products and services they want, something they call “À La Smarte.” Spirit also operates one of the youngest and most fuel-efficient fleets in the U.S. The carrier proudly calls their youthful fleet of aircraft their “Fit Fleet®.” Spirit Airlines operates a fleet of 202 Airbus A320 Family and A320neo Family aircraft.
Source: Spirit Airlines/PRNewswire