Spirit Airlines, Inc. reported first quarter 2023 financial results.
First Quarter 2023 (unaudited)
As Reported
Adjusted1
$(91.3) Million $(89.4) million
Total operating revenues $1,349.8 million $1,349.8 million
Operating income (loss) $(112.4) Million
Operating margin (8.3)% (6.8)%
Net income (loss) $(103.9) million
Diluted earnings (loss) per share $(0.95) $(0.82)
“For the first quarter 2023, our adjusted operating margin came in better than expected, helped by lower fuel and a strong revenue per available seat mile (“TRASM”) performance. Looking ahead to the second quarter, demand continues to be strong and industry capacity remains constrained, both of which are beneficial for unit revenue. Our core business is solid, and the team is doing an excellent job solving for the problems within our control,” said Ted Christie, Spirit’s President and Chief Executive Officer. “Earlier this month, the Fort Lauderdale area experienced severe flash floods, requiring a 40-hour closure of the Fort Lauderdale airport. As a result of this weather event, Spirit canceled disrupting travel plans for a substantial number of our Guests. Despite the significant and out-sized disruption to our network, our team was primed and ready to go on Friday morning once the airport re-opened. This quick recovery is a testament to the diligent efforts of our entire team as well as the innovative changes have put in place to help accelerate recovery operations.”
Fleet
Spirit took delivery of five new A320neo aircraft during the first quarter 2023 and retired four A319ceo aircraft. The Company ended the quarter with 195 aircraft in its fleet, an increase of 10.8 percent since the end of first quarter 2022.
Liquidity and Capital Deployment
Spirit ended first quarter 2023 with unrestricted cash and cash equivalents, short-term investment securities and liquidity available under the Company’s revolving credit facility of $1.7 billion.
Total capital expenditures for the three months ended March 31, 2023, were $86.0 million, primarily related to net outflows of aircraft pre-delivery deposits, expenditures related to the building of Spirit’s new headquarters campus in Dania Beach, Florida and spare parts, including one spare engine.
In other news, Aspiring pilots in the Chicago area can soon soar from a college classroom to the flight deck at Spirit Airlines. The carrier and Lewis University today announced a new partnership to launch the Spirit Wings Pilot Pathway program at the university’s College of Aviation, Science and Technology in Romeoville, Illinois. The program provides graduates with a direct path to a rewarding career flying for Spirit. Lewis University students can gain valuable experience and complete the steps needed to become a Spirit First Officer while attending a leading aviation university and finishing their college degree.
Lewis University students pursuing an aviation technology degree can apply for the program after obtaining a recommendation from a faculty member in the College of Aviation, Science and Technology and completing their sophomore year. If successful in Spirit’s interview process, they will receive a conditional offer of employment, a Spirit Electronic Flight Bag (EFB) and mentorship as they complete their degree and all Federal Aviation Administration (FAA) requirements for a Restricted Airline Transport Pilot (R-ATP) certificate. Graduates who meet all program requirements will join the team as a Spirit First Officer.
Top Copyright Photo: Spirit Airlines Airbus A320-271N WL N967NK (msn 11128) FLL (Jay Selman). Image: 404290.
Spirit Airlines aircraft photo gallery:
