Category Archives: Spirit Airlines

Spirit Airlines starts flights from San Jose, CA

Spirit Airlines on June 7 launched its new, nonstop service from its seventh California airport, San José Mineta International Airport (SJC) with two daily flights to Las Vegas (LAS) and daily flights to Dallas-Fort Worth (DFW) and San Diego (SAN).

Spirit Airlines Routes at SJC
Destination:Flights Available:Launch Date:
Dallas-Fort Worth (DFW)DailyJune 7, 2023
Las Vegas (LAS)2x DailyJune 7, 2023
San Diego (SAN)DailyJune 7, 2023

Spirit Airlines takes delivery of its first Airbus A321neo

Spirit Airlines today celebrated a major company first with the unveiling of its first A321neo aircraft in a ceremony at the airline’s Detroit maintenance hangar. The aircraft, A321-271NX, N702NK, msn 11328, will operate its first commercial flight on June 7. Spirit plans to accept seven more new A321neos in 2023, and 24 more are projected for delivery in 2024 in addition to other A320 Family aircraft deliveries.

Spirit Airlines’ first Airbus A321neo (N702NK) at the airline’s maintenance facility in Detroit.

The A321 is the largest member of the Airbus A320 Family, and Spirit currently operates 30 A321ceo aircraft in its fleet of nearly 200 aircraft. Spirit already operates one of the youngest and most fuel-efficient fleets in the industry and adding the A321neo to its fleet will drive even more fuel efficiency. Going forward, all of Spirit’s A321 aircraft will deliver with new engine option (NEO) advanced engines that together with fuel-saving Sharklet™ wingtip devices, are 20 percent more fuel-efficient than A321ceo aircraft. Additionally, the new aircraft offer additional range and a quieter onboard experience for Guests.

Spirit is currently in a fleet renewal process as it retires its A319ceo aircraft while adding larger, more modern aircraft to increase capacity and fuel efficiency. Spirit recently completed an agreement to sell 29 of its A319ceo aircraft, which are the oldest aircraft in Spirit’s fleet and the smallest of the Airbus A320 Family aircraft. The company is planning for all its A319ceo aircraft to transition out the fleet by the end of 2025.

The new features and benefits of the A321neo include:

  • A321neos offer expanded seating capacity with the optimized use of cabin space, increased exit limits and a new cabin door configuration. Additionally, all new aircraft are receiving Spirit’s latest cabin upgrade with enhanced, wider seats that include additional usable legroom from the curved seatback design.
  • The larger aircraft allow Spirit to increase capacity at constrained slot-controlled airports, providing More Go for Guests in major metropolitan areas.
  • Spirit will maintain its wide aisles that allow quicker on- and off-boarding and extra space for crews to work.
  • The new aircraft add an additional 500 nautical miles in range over the previous generation A321ceo type, opening new destination opportunities.
  • Spirit is installing Pratt & Whitney GTF engines on new aircraft deliveries. The GTF engine has demonstrated its promised ability to reduce fuel burn and carbon emissions by 16 percent on this family of aircraft, reduce nitrogen oxide emissions by 50 percent compared to the regulatory standard and reduce the noise footprint by 75 percent.

JetBlue and Frontier announce divestiture agreement in connection with JetBlue’s combination with Spirit

JetBlue Airways Corporation and Frontier Group Holdings, Inc. have announced that the airlines have entered into a definitive agreement under which JetBlue will divest all of the holdings of Spirit Airlines, Inc. at New York’s LaGuardia Airport to Frontier in connection with JetBlue’s planned merger with Spirit.

These divestitures are part of JetBlue’s upfront commitments included in the merger agreement with Spirit and are conditioned on the closing of the JetBlue-Spirit transaction.

Under the terms of the agreement, JetBlue has agreed to transfer to Frontier all of Spirit’s holdings at LaGuardia, principally consisting of six gates at the Marine Air Terminal and 22 takeoff and landing slots. The divestitures are conditioned upon, and will occur after the closing of, JetBlue’s planned combination with Spirit and are subject to additional closing conditions, including approval by the Port Authority of New York and New Jersey and the FAA/DOT.

JetBlue expects to close the transaction with Spirit in the first half of 2024.

Spirit Airlines expands its pilot pipeline with North Texas-based US Aviation Academy

Spirit Airlines is turning to Texas to expand its pipeline of highly-skilled, professional pilots. The carrier today announced that US Aviation Academy in Denton, Texas, is the latest partner to join the Spirit Wings Pilot Pathway program. The flight school offers comprehensive pilot training and is conveniently located near one of Spirit’s Pilot crew bases at Dallas Fort Worth International Airport (DFW), which provides graduates with opportunities to build relationships and progress to a successful career as a Spirit First Officer.

Candidates must successfully complete their flight training at US Aviation Academy and achieve approximately 500 hours of total flight time to apply for the program. 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 work toward completing the hours required for an Airline Transport Pilot (ATP) certificate. Program pilots who meet all requirements will join the team as a Spirit First Officer.

Spirit’s Pilots soar to 90+ destinations across the United States, Latin America and the Caribbean in some of the newest, most fuel-efficient aircraft in the industry. More brand-new planes are planned for delivery in 2023, including eight new Airbus A321neo aircraft, creating opportunities for First Officers to quickly upgrade to Captain. The airline’s Pilots recently approved a contract that provides a significant pay increase and other enhanced benefits. Spirit also offers its Pilots industry-leading training and exceptional quality of life.

Spirit Airlines launches its Puerto Rico expansion

Spirit Airlines Airbus A320-271N WL N903NK (msn 7011) FLL (Jay Selman). Image: 404292.

Spirit Airlines entered a new chapter in its 20+ year history on May 5 in Puerto Rico by launching its expansion at Luis Muñoz Marín International Airport (SJU).

Travelers now have convenient, daily nonstop flight options between San Juan and destinations across the eastern half of the U.S. to include Atlanta (ATL), Chicago (ORD), Dallas/Fort Worth (DFW), and Detroit (DTW), with a nonstop flight to Hartford (BDL) starting on June 7.

In addition to the new routes, Spirit on May 5 increased SJU service to include five daily flights to Orlando (MCO), and two daily flights to Baltimore (BWI), Fort Lauderdale/Hollywood (FLL) and Newark (EWR).

Spirit Airlines Routes at San Juan (SJU)
Destination:Flights Available:Launch Date:
Atlanta (ATL) NEWDailyMay 5
Boston (BOS)DailyExisting
Hartford (BDL) NEW3x WeeklyJune 7
Baltimore (BWI)2x DailyFrequency increase on May 5
Dallas (DFW) NEWDailyMay 5
Detroit (DTW) NEWDailyMay 5
Newark (EWR) 2x DailyFrequency increase on June 7
Fort Lauderdale (FLL) 2x DailyFrequency increase on April 5
Orlando (MCO) 5x DailyFrequency increase on May 5
Miami (MIA)DailyExisting Service
Chicago (ORD) NEWDailyMay 5
Philadelphia (PHL)DailyExisting Service
Tampa (TPA)DailyExisting Service

In addition to serving its Guests, Spirit and its partners employ nearly 1,000 Puerto Ricans on the island across three airports and its aircraft maintenance facility in Aguadilla. This new expansion will also create about 80 new jobs in San Juan.

Top Copyright Photo: Spirit Airlines Airbus A320-271N WL N903NK (msn 7011) FLL (Jay Selman). Image: 404292.

Spirit Airlines aircraft photo gallery:

Spirit Airlines aircraft photo gallery

Spirit Airlines reports a net loss of $103.9 million in the first quarter, partners with Lewis University for new pilot pathway

Spirit Airlines Airbus A320-271N WL N967NK (msn 11128) FLL (Jay Selman). Image: 404290.

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:

Spirit Airlines aircraft photo gallery

Spirit Airlines to add more routes this summer from Boston

Spirit Airlines is bringing a batch of new, affordable and convenient nonstop flights to Boston Logan International Airport (BOS) this summer, nearly doubling its number of year-round routes at BOS. Soon, Boston-area travelers will have More Go to Charlotte, Dallas-Fort Worth, Los Angeles, Phoenix and Houston.

Spirit Airlines Routes at Boston (BOS):   
Destination:Flights Available:Launch Date:
Atlanta (ATL)DailyExisting
Charlotte (CLT)NEWDailyJune 7, 2023
Dallas-Fort Worth (DFW)NEWDaily June 7, 2023
Fort Lauderdale-Hollywood (FLL)DailyExisting
Fort Myers (RSW)Daily, Seasonal*Existing
Houston (IAH) NEWDailyAug. 9, 2023
Las Vegas (LAS)DailyExisting
Los Angeles (LAX) NEWDailyJuly 5, 2023
Miami (MIA)DailyExisting
Myrtle Beach (MYR)DailyExisting
Orlando (MCO)DailyExisting
Phoenix (PHX) NEWDailyAug. 9, 2023
San Juan (SJU)DailyExisting
Tampa (TPA)Daily, Seasonal*Existing
*Seasonal route not flown in summer months

Spirit Airlines welcomes its 200th new aircraft delivery from Airbus

Spirit Airlines has welcomed a landmark delivery for the airline’s growing Fit Fleet with its 200th new aircraft delivery from Airbus.

The Airbus A320neo (N973NK) was assembled at the Airbus U.S. Manufacturing Facility in Mobile, Alabama, and prepared for service at Spirit’s aircraft maintenance facility in Detroit.

The new delivery is part of continued growth at Spirit. The airline introduced 14 new planes in 2022, with plans to add 26 new aircraft in 2023. Additionally, Spirit has a major first with the upcoming delivery of its first A321neo aircraft.

Spirit Airlines launches nonstop Charleston, SC service, Las Vegas to be added in September

Spirit Airlines Airbus A320-271N WL N974NK (msn 11270) BUR (Michael B. Ing). Image: 960393.

Spirit Airlines on April 5 announced the launch of its new, nonstop service from Charleston International Airport (CHS). These new, convenient nonstop flight options deliver affordable fares to Fort Lauderdale/Hollywood (FLL), Newark (EWR), and Philadelphia (PHL).

To celebrate the service launch, Spirit also announced an expansion with a new nonstop route to Las Vegas (LAS) starting in September.

Spirit Airlines Routes at Charleston (CHS):   
Destination:Flights Available:Launch Date:
Fort Lauderdale (FLL)DailyApril 5, 2023
Las Vegas (LAS) NEW5x WeeklySeptember 7, 2023
Newark (EWR)DailyApril 5, 2023
Philadelphia (PHL)DailyApril 5, 2023

Spirit’s Charleston service adds to the airline’s long-time history in South Carolina. Spirit first entered the state more than 25 years ago with service from Myrtle Beach (MYR). The airline currently offers 17 peak-day daily departures in South Carolina.

In addition to the new service from CHS, Spirit is launching seasonal nonstop flights to Chicago (ORD), Cleveland (CLE), and Rochester (ROC) from Myrtle Beach this May.

Top Copyright Photo: Spirit Airlines Airbus A320-271N WL N974NK (msn 11270) BUR (Michael B. Ing). Image: 960393.

Spirit Airlines aircraft photo gallery:

Spirit Airlines aircraft photo gallery

Spirit Airlines to add over 4,000 new employees

Spirit Airlines Airbus A320-271N WL N931NK (msn 9548) SEA (Brian Worthington). Image: 960323.

Spirit Airlines has announced plans to hire more than 4,000 new Team Members in 2023 as the airline adds new planes and destinations to its growing network. The new hires will include Pilots, Flight Attendants, Aviation Maintenance Technicians and other support center roles.

Photo: Spirit Airlines

Plus, Spirit is growing in new and existing cities, with positions available with Spirit and business partners at airport stations across the network. These job opportunities allow job seekers across the nation to soar with attractive travel benefits and the advancement opportunities associated with working for a dynamic and fast-growing airline.

The airline continued:

These exciting job opportunities follow the airline’s soaring 2022 hiring trend as thousands of new Spirit Team Members joined the growing company last year. Some recent hiring milestones include:

  • In 2022, we received 21 brand new Airbus A320 Family aircraft. And in 2023, Spirit plans to receive another 26 new aircraft, with more on the way. We bring on new Team Members with each additional plane.
  • Spirit recently opened a state-of-the-art aircraft maintenance facility at George Bush International Airport (IAH) in Houston, Texas.
  • In 2022, Spirit added new crew bases for Pilots and Flight Attendants in Atlanta, Houston and Miami, growing our total number to 10 home bases across the country where our flight crews can choose to begin and end their duty.
  • Also in 2022, Spirit added nine new cities to its growing route map of nearly 100 destinations across the U.S., Latin America, and the Caribbean, with more new cities coming in 2023.

Top Copyright Photo: Spirit Airlines Airbus A320-271N WL N931NK (msn 9548) SEA (Brian Worthington). Image: 960323.

Spirit Airlines aircraft photo gallery:

Spirit Airlines aircraft photo gallery
Volume 1

JetBlue and Spirit respond to the DOJ decision to sue

JetBlue Airways Corporation and Spirit Airlines responded to the filing by the U.S. Department of Justice (the “DOJ”) seeking to block the companies’ merger:

JetBlue and Spirit will continue to advance our plan to create a compelling national challenger to the Big Four airlines, which control about 80% of the market after years of industry consolidation that the DOJ itself approved. By coming together, we will expand JetBlue’s unique offering – where customers do not have to choose between a low fare and a great experience – to boost competition nationally.

JetBlue has proven its ability to force the legacy carriers to react to JetBlue’s low fares and award-winning service. The DOJ itself said that “In the face of consolidation, JetBlue has provided an important and steadfast source of competition” and that “JetBlue’s reputation for lowering fares is so well known in the airline industry that it has earned a name: the ‘JetBlue Effect.’” (a).

JetBlue CEO Robin Hayes said: “Customers deserve a competitive airline marketplace and we will pursue this merger to ensure they get it, continuing to disrupt the legacy airlines with low fares and award-winning service that even the DOJ has applauded. We believe the DOJ has got it wrong on the law here and misses the point that this merger will create a national low-fare, high-quality competitor to the Big Four carriers which – thanks to their own DOJ-approved mergers – control about 80% of the U.S. market. There is too much at stake for the DOJ to prevent us from bringing the JetBlue difference to more customers in more markets.”

Spirit CEO Ted Christie said: “We disagree with the DOJ’s decision to seek to block the proposed merger, which will benefit consumers and employees. We will vigorously defend our position that a combined JetBlue and Spirit will be a game changer for customers nationwide, creating the most compelling national low-fare challenger to the dominant U.S. carriers. Together, we intend to democratize flying for travelers across the country – a goal we believe is worthy of the government’s support.”

ULCC Market Will Continue to Thrive as JetBlue Brings Much-Loved, Award-Winning Experience to Spirit Aircraft

Customers will win with both more JetBlue service and continued ultra-low-cost carrier (ULCC) expansion. JetBlue competes for all customers, and its Blue Basic fare offers customers a competitive, low-price option to save more money. In addition, because many Spirit aircraft will continue to fly in their current configuration during the retrofitting process after the transaction closes, there will be no short-term change in capacity.

As JetBlue retrofits Spirit’s aircraft with its leading customer-focused experience (e.g., adding more leg room and other onboard amenities), the combined airline will also be able to meaningfully increase aircraft utilization, offsetting seats removed in the retrofitting process by adding more flights. This will result in more seats with Blue Basic fares, and coupled with the rapid growth of the ULCCs, will create a more competitive environment and ongoing access for the most price-sensitive customers.

Hayes continued: “Putting the JetBlue’s increased legroom and free amenities on Spirit aircraft is a big win for consumers, and we can offset any loss of seats with increased flying and through ULCC growth. You shouldn’t have to choose between a low fare and a great experience, so the government should celebrate an expansion of JetBlue’s low fares and customer favorites like the most legroom in coach, free Wi-Fi, live seatback TV, and free snacks coming to Spirit’s fleet.”

Settlement Resolves Concerns About Florida; Ensures New Jobs and Additional Flights

We are extremely pleased to secure a settlement with the State of Florida supporting the merger between JetBlue and Spirit. The agreement ensures that the merger will deliver new jobs in Florida as JetBlue adds its low-fare flights in airports across the state.

  • The combined JetBlue and Spirit will increase seat capacity by at least 50% in both Fort Lauderdale and Orlando and will increase its aggregate seat capacity at all other Florida airports in which JetBlue or Spirit currently operate by at least 50%.
  • These commitments will bring hundreds of new daily flights to Florida, additional frequencies in over 35 markets, and service to nearly 50 new routes that are not currently served by either JetBlue or Spirit.
  • JetBlue will bring at least 1,000 new jobs to South Florida, at least 500 new jobs to the Orlando region, and at least 500 new jobs to support JetBlue’s expanded operations at airports throughout Florida.
  • JetBlue will extend its “no furlough” policy and provide increased compensation to Spirit Team Members.
  • JetBlue will maintain all Florida facilities currently in use by either JetBlue or Spirit, including Spirit’s planned future headquarters in Dania Beach, at their current or planned employment levels or greater for at least five years following the merger.

Hayes said: “We’re appreciative of Florida State Attorney General Moody’s willingness to recognize the opportunity for consumers and negotiate a fair settlement. It’s unfortunate the federal government and other states want to block the benefits of this merger, including significant job growth and the increased number of affordable flights that this combination unlocks.”

In fact, all JetBlue crewmembers and Spirit Team Members will benefit from a larger, more competitive airline:

  • Once combined, the airline will have more aircraft, a bigger network, more jobs, and more opportunities.
  • JetBlue has committed to strong protections for crewmembers and Team Members, including extending its 23-year no furlough commitment, committing to no displacements, and providing assurances around seniority protection.
  • By combining airlines, crewmembers and Team Members will have the opportunity to open the collective bargaining agreements and discuss topics important to them, including pay scales and benefits. JetBlue is incentivized to complete this process as fast as possible so the airline can receive a single operating certificate and begin functioning as one airline.

JetBlue-Spirit Merger Benefits Are Clear and Have Wide Support

The benefits of a JetBlue and Spirit combination have been widely recognized by consumer advocates, labor leaders, legislators, local government officials, industry experts, and academics. In addition, thousands of JetBlue crewmembers and Spirit Team Members have submitted letters of support to the DOJ and the U.S. Department of Transportation. We are confident a court, too, will recognize the merits of our case.

The rationale for a JetBlue-Spirit combination is clear:

  • JetBlue is 3x more effective than Spirit at bringing down competitor fares. JetBlue’s unique combination of low fares and great service is a competitive force that keeps the legacy carriers on their toes and results in lower fares.
  • JetBlue’s award-winning customer experience will reach more customers. JetBlue is loved by customers for its award-winning onboard service, featuring the most legroom in coach (b); free and fast Fly-Fi broadband internet (c); complimentary and unlimited name-brand snacks and soft drinks; and free, live DIRECTV® programming at every seat.
  • The combination will unlock long-term opportunities to add more destinations and routes that otherwise would not be possible. This new flying will bring increased choices, and low-fare competition to more cities and in legacy carrier hubs.
  • JetBlue and Spirit together will still be much smaller than any Big Four carrier. Even as the fifth-largest carrier, a combined JetBlue and Spirit will have only 9% market share, compared to 16-24% for each of the four largest airlines.
  • JetBlue and Spirit primarily compete with other carriers not each other. According to a third-party source published in April 2022 and reaffirmed with more recent data, JetBlue and Spirit only overlap on 11% or less of the nonstop routes on which both of them fly.
  • JetBlue has offered unprecedented upfront divestures to ensure ULCC growth. To address potential concerns around the limited overlap between JetBlue and Spirit, JetBlue has already made upfront commitments to divest all of Spirit’s holdings in Boston and New York, as well as five gates and related assets in Fort Lauderdale, which significantly reduces the already small number of nonstop overlap routes.
  • JetBlue will expand sustainability leadership. JetBlue expects to extend its industry-leading climate commitments to the combined airline, including its target to achieve net zero carbon emissions by 2040, which is ten years ahead of the broader U.S. airline industry’s goal. As part of these efforts, JetBlue will leverage the combined company’s order book to accelerate the fleet transition to next generation, fuel-efficient aircraft and introduce regular use of sustainable aviation fuel into Spirit’s West Coast operations after closing.

Justice Department sues to block JetBlue’s proposed acquisition of Spirit

The Justice Department, together with Attorneys General of the Commonwealth of Massachusetts, the State of New York, and the District of Columbia, filed a civil antitrust lawsuit today to block JetBlue Airways Corporation’s (JetBlue) proposed $3.8 billion acquisition of its largest and fastest-growing ultra-low-cost rival, Spirit Airlines, Inc. (Spirit). JetBlue and Spirit compete fiercely today on hundreds of routes serving millions of travelers. By eliminating that competition and further consolidating the United States airlines industry, the proposed transaction will increase fares and reduce choice on routes across the country, raising costs for the flying public and harming cost-conscious fliers most acutely.

The complaint, filed in the District of Massachusetts, alleges that Spirit’s low-cost, no-frills flying option has brought lower fares and more options to routes across the country, making it possible for more Americans – particularly price sensitive consumers who pay their own fares – to travel. JetBlue’s acquisition of Spirit would eliminate the “Spirit Effect,” where Spirit’s presence in a market forces other air carriers, including JetBlue, to lower their fares. The deal also would eliminate half of the ultra-low-cost capacity in the United States. This will lead to higher fares and fewer seats, harming millions of consumers on hundreds of routes.

“As our complaint alleges, the merger of JetBlue and Spirit would result in higher fares and fewer choices for tens of millions of travelers, with the greatest impact felt by those who rely on what are known as ultra-low-cost carriers in order to fly,” said Attorney General Merrick B. Garland. “Companies in every industry should understand by now that this Justice Department will not hesitate to enforce our antitrust laws and protect American consumers.”

“Our complaint alleges that JetBlue’s acquisition of Spirit would particularly hurt cost-conscious travelers,” said Associate Attorney General Vanita Gupta. “Ultra-low-cost carriers make air travel possible so more Americans can take a much-needed family vacation or celebrate or mourn together with loved ones. We allege that the proposed merger would lead to fewer seats and higher prices for travelers.”

“JetBlue’s proposed acquisition of Spirit eliminates a disruptive, low-cost option for millions of Americans. Whether they fly Spirit or not, travelers throughout the United States benefit from an independent Spirit because where Spirit competes, other airlines – including JetBlue – are forced to compete more vigorously by lowering fares, offering greater innovations, and delivering more consumer choice,” said Principal Deputy Assistant Attorney General Doha Mekki of the Justice Department’s Antitrust Division. “This transaction occurs against the backdrop of years of airline consolidation in the United States.”

The complaint, which seeks to block the acquisition under Section 7 of the Clayton Act, alleges Spirit has been a particularly disruptive force, growing rapidly, introducing innovative products, and allowing customers to choose which services to purchase, all while charging customers very low fares. Spirit has forced larger airlines, particularly the already-low-cost JetBlue, to compete for customers by introducing unbundled, customizable ticket options and lowering their own fares, allowing more Americans to travel. If the acquisition is allowed to proceed, prices would increase on routes where the two airlines currently compete. This is particularly the case on the over 40 direct routes where the two companies’ combined market shares are so high that the deal is presumptively anticompetitive.

As further alleged in the complaint, in the last 10 years, Spirit has doubled its network in size and, before this deal, expected to continue expanding at a quick pace. The acquisition stops this future competition before it starts.

The acquisition would also make it easier for the remaining airlines to coordinate to charge travelers higher fares or limit capacity. JetBlue has already partnered with American Airlines, the largest airline in the world, through the Northeast Alliance, which the Department sued to block. Now, JetBlue is doubling down on consolidation, seeking to acquire and eliminate its main ultra-low-cost competitor, depriving travelers of yet another choice.

If allowed to eliminate the Spirit option, JetBlue would likely increase prices on every route where Spirit flies today. As a result, travelers who previously preferred Spirit’s lower-price, no-frills service would either have to pay more for amenities they do not want, or may no longer be able to afford to travel at all.

JetBlue is a Delaware corporation headquartered in Long Island City, New York. In 2022, it flew over 39 million passengers to approximately 107 destinations around the world, earning about $9.1 billion in revenue.

Spirit is a Delaware corporation headquartered in Miramar, Florida. In 2022, it flew over 38 million passengers to approximately 92 destinations in the Americas, earning about $5 billion in revenue.

JetBlue pleads its case for the merger approval for Spirit Airlines with updated data

JetBlue-Spirit merger

JetBlue Airways could be facing an uphill challenger to acquire governmental approvals for its proposed acquisition of Spirit Airlines.

JetBlue has made this case for the merger:

JetBlue has released updated data, which further supports the disruptive role of the airline on the dominant, higher-price legacy carriers, and the pro-competitive impact the merger with Spirit will have on the industry.

Analysis Adds to Compelling Rationale for JetBlue-Spirit Combination

  • JetBlue is over 3x more effective than Spirit at bringing down competitor fares. JetBlue’s unique combination of low fares and great service is a competitive force that keeps the legacy carriers on their toes and results in lower fares. This is the “JetBlue Effect,” an outcome specifically cited by the U.S. Department of Justice. An economic analysis found that JetBlue is proven on average to be over 3x as effective at lowering legacy carrier nonstop fares than Spirit. With the scale unlocked by combining with Spirit, JetBlue will be able to bring down legacy carrier fares on more routes, benefitting more travelers than if JetBlue and Spirit continued as standalone airlines.
  • JetBlue and Spirit primarily compete with other carriers not each other. According to a third-party source published in April 2022 and reaffirmed with more recent data, JetBlue and Spirit have very limited overlap, and only overlap on 11% or less of the nonstop routes on which both of them fly. Instead, both carriers primarily compete against the dominant Big Four airlines.
  • Proposed divestitures materially reduce limited overlap. To address potential concerns around the limited overlap between JetBlue and Spirit, JetBlue has already made unprecedented upfront commitments to divest all of Spirit’s holdings in Boston and New York, as well as five gates and related assets at Fort Lauderdale, to allow for allocation to other ultra-low-cost carriers (ULCCs). These divestitures significantly reduce the already small number of nonstop overlap routes flown by JetBlue and Spirit.
  • ULCCs are growing rapidly and have expressed high demand for divested assets. There is significant ULCC demand for all of JetBlue’s proposed divestitures, highlighting the attractiveness of these markets as the rapidly growing ULCCs seek additional opportunities for further growth. Further, the ULCCs are also well-positioned to continue their aggressive expansion and begin serving overlapping routes, with hundreds of aircraft on order that can service these routes.
  • The combination of JetBlue and Spirit plus the rapid growth of ULCCs will assure increased competition and low fares.JetBlue competes for all customers, and its Blue Basic Fare offers customers a competitive, low-price option to save more money. In addition, because many Spirit aircraft will continue to fly in their current configuration during the retrofitting process after the transaction closes, there will be no short-term change in capacity. As JetBlue retrofits Spirit’s aircraft with its leading customer-focused experience (e.g., adding more leg room and other onboard amenities), the combined airline will be able to meaningfully increase aircraft utilization, offsetting seats removed in the retrofitting process by adding more flights. This will result in more seats with Blue Basic Fares, and coupled with the rapid growth of the ULCCs, will create a more competitive environment and ongoing access for the most price-sensitive customers.
JetBlue tails at JFK

JetBlue-Spirit Combination Is Solution to the Lack of Competition for the Big Four

The Big Four airlines have a lock on about 80% of the market. JetBlue’s combination with Spirit allows it to create a compelling national challenger to these dominant airlines, while also ensuring ULCC options remain available in overlap markets.

While JetBlue, with its highly unique combination of low fares and great service, will be able to expand with new national breadth as a result of the transaction, it will remain a significantly smaller player than each of the Big Four airlines. According to the data, a combined JetBlue and Spirit will have only about 9% market share, compared to about 16-24% for each of the four largest airlines, but the added scale and ability to further grow will result in meaningful competition on more routes to more destinations and greater opportunities for Crewmembers and Team Members of both airlines.

JetBlue and Spirit flight attendant unions are split on the merger

Spirit Airlines Airbus A320-271N WL N972NK (msn 11173) LAX (Michael B. Ing). Image: 960137.

JetBlue Airways’ flight attendants, represented by the TWU, are opposing the merger with Spirit Airlines. The union has sent a letter to the Attorney General and the Department of Transportation opposing the merger.

Meanwhile the flight attendants of Spirit Airlines, represented by the Association of Flight Attendants-CWA, are agreeing with and supporting the takeover of Spirit by JetBlue.

The Department of Justice will rule on the merger request. JetBlue has vowed to fight any refusal.

Top Copyright Photo: Spirit Airlines Airbus A320-271N WL N972NK (msn 11173) LAX (Michael B. Ing). Image: 960137.

Spirit Airlines aircraft photo gallery:

Spirit Airlines aircraft photo gallery

Spirit Airlines is coming to San Jose, California

Spirit Airlines Airbus A320-271N WL N950NK (msn 10769) LAS (Jay Selman). Image: 404225.

Spirit Airlines has announced the launch of new, nonstop service from San José Mineta International Airport (SJC). The carrier is kicking off the new service with two daily flights to Las Vegas (LAS) and daily flights to Dallas/Fort Worth (DFW) and San Diego (SAN) on June 7, 2023.

Spirit Airlines Routes at SJC
Destination:Flights Available:Launch Date:
Dallas (DFW)DailyJune 7, 2023
Las Vegas (LAS)Twice DailyJune 7, 2023
San Diego (SAN)DailyJune 7, 2023

The new service marks the seventh airport Spirit serves in the Golden State, joining Burbank (BUR), Los Angeles (LAX), Oakland (OAK), Orange County (SNA), Sacramento (SMF) and San Diego (SAN). Spirit first launched California service in Los Angeles in 2000 and has grown to more than 55 daily departures to 23 out-of-state destinations. In the past three years, the carrier has grown the number of flights by 41 percent and seats by 46 percent statewide.

Top Copyright Photo: Spirit Airlines Airbus A320-271N WL N950NK (msn 10769) LAS (Jay Selman). Image: 404225.

Spirit Airlines aircraft photo gallery:

Spirit Airlines to launch five new routes from San Juan

Spirit Airlines Airbus A320-271N WL N971NK (msn 11222) LAX (Michael B. Ing). Image: 960077.

Spirit Airlines has announced the launch of five new, nonstop routes from Luis Muñoz Marín International Airport (SJU). The expansion adds convenient and affordable flights to Atlanta (ATL), Chicago(ORD), Dallas (DFW), Detroit (DTW) and Hartford (BDL), growing Spirit’s Puerto Rico service from 11 destinations to 16 by June 2023.

The carrier also announced it will increase flights between San Juan (SJU) and Orlando (MCO) to five flights daily and grow flights between San Juan and Baltimore (BWI), Fort Lauderdale (FLL) and Newark (EWR) to two flights daily.

Spirit Airlines Routes at San Juan (SJU)
Destination:Flights Available:Launch Date:
Atlanta (ATL) NEWDailyMay 5
Boston (BOS)DailyExisting
Hartford (BDL) NEW3x WeeklyJune 7
Baltimore (BWI)2x DailyFrequency increases on May 5
Dallas (DFW) NEWDailyMay 5
Detroit (DTW) NEWDailyMay 5
Newark (EWR) 2x DailyFrequency increases on June 7
Fort Lauderdale (FLL) 2x DailyFrequency increases on April 5
Orlando (MCO) 5x DailyFrequency increases on May 5
Miami (MIA)DailyExisting Service
Chicago (ORD) NEWDailyMay 5
Philadelphia (PHL)DailyExisting Service
Tampa (TPA)DailyExisting Service

Spirit first landed on the island in 2001 with service to San Juan (SJU) and has grown its Puerto Rican route map to include Aguadilla (BQN) and Ponce (PSE). The airline will offer 21 peak-day departures in San Juan by June 2023, making it the second-largest carrier by destinations, seats and available seat miles (ASM). This adds to Spirit’s growth across the island, which represents more than 200 percent growth in the past four years.

Top Copyright Photo: Spirit Airlines Airbus A320-271N WL N971NK (msn 11222) LAX (Michael B. Ing). Image: 960077.

Spirit Airlines aircraft photo gallery:

Spirit Airlines aircraft photo gallery

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Spirit Airlines expects DOJ decision on JetBlue Airways merger in about 30 days

Spirit Airlines Airbus A320-271N WL N916NK (msn 9175) FLL (Andy Cripps). Image: 955788.

Spirit Airlines, according to Reuters, expects the Department of Justice (DOJ) to rule on the proposed Spirit takeover by JetBlue in around 30 days.

Top Copyright Photo: Spirit Airlines Airbus A320-271N WL N916NK (msn 9175) FLL (Andy Cripps). Image: 955788.

Spirit Airlines aircraft photo gallery:

Spirit Airlines reports fourth quarter and full year 2022 results

Spirit Airlines, Inc. reported fourth quarter and full year 2022 financial results.

“I want to thank the entire Spirit Team for their contributions in overcoming the many challenges we faced during 2022. Thanks to their dedication and relentless pursuit to implement more efficient and effective strategies, we made excellent progress on the steps necessary to return Spirit to sustained profitability,” saidTed Christie, Spirit’s President and Chief Executive Officer.

Fourth Quarter 2022 Financial Results

For the fourth quarter 2022, Spirit reported a net loss of $270.7 million, or a net loss of $2.49 per diluted share. Excluding special items, adjusted net income for the fourth quarter 2022 was $12.6 million1, or an adjusted net income of $0.12 per diluted share1.

For the fourth quarter 2022, Spirit reported a pre-tax loss of $340.3 million and a pre-tax margin of negative 24.5 percent. Adjusted pre-tax income for the fourth quarter was $23.0 million1 and adjusted pre-tax margin was 1.7 percent.

Operations

For the fourth quarter 2022, the Company’s load factor was 81.0 percent, DOT on-time performance2 was 73.2 percent and Completion Factor2 was 97.0 percent.

Revenue

Total operating revenues for the fourth quarter 2022 were $1.4 billion, an increase of 43.5 percent compared to the fourth quarter 2019 primarily due to increased flight volume and stronger operating yields. Total revenue per ASM (“TRASM”) was 10.81 cents, up 17.0 percent compared to fourth quarter 2019 on 22.7 percent more capacity.

On a per passenger flight segment basis, compared to the same period in 2019, total revenue per passenger flight segment (“segment”) for the fourth quarter 2022 increased 22.5 percent to $135.62. Compared to the fourth quarter 2019, fare revenue per segment increased 22.1 percent to $64.31 and non-ticket revenue per segment increased 22.9 percent to $71.313. Non-ticket revenue per segment increased sequentially from the third quarter 2022 by $4.24, driven by strong take rates for ancillaries combined with the benefit from revenue management initiatives.

Cost Performance

Total GAAP operating expenses for the fourth quarter 2022 increased 100.8 percent compared to the fourth quarter 2019 to $1,697.0 million. Adjusted operating expenses for the fourth quarter 2022 increased 58.0 percent compared to the fourth quarter 2019 to $1,333.7 million4. Compared to the fourth quarter 2019, these increases were primarily driven by increases in flight volume, additional aircraft, higher fuel prices and inflationary wage pressures.

Fleet

Spirit took delivery of 10 new A320neo aircraft during the fourth quarter 2022. The Company ended the quarter with 194 aircraft in its fleet, an increase of 33.8 percent since the end of fourth quarter 2019.

In January 2023, the Company signed an agreement to sell 29 unencumbered A319ceo aircraft powered with V2500 engines to Gryphon Trading Company, LLC (“Gryphon”), with anticipated deliveries to Gryphon beginning in the first quarter 2023 through the end of the third quarter 2024. The Company expects to remove 14 and 15 A319ceo aircraft from its operating fleet in 2023 and 2024, respectively. The other two A319ceo aircraft in our operating fleet are anticipated to be returned to the lessor upon lease expiration in 2025.

Liquidity and Capital Deployment

Spirit ended fourth quarter 2022 with unrestricted cash and cash equivalents, short-term investment securities and liquidity available under the Company’s revolving credit facility of $1.8 billion.

During the fourth quarter 2022, the Company completed a private offering of an additional $600 million in aggregate principal amount of 8.00% Senior Secured Notes due 2025 (the “Senior Secured Notes”) by Spirit IP Cayman Ltd., an indirect wholly-owned subsidiary of the Company, and Spirit Loyalty Cayman Ltd., an indirect wholly-owned subsidiary of the Company (together the “Issuers”). As of December 31, 2022, the Issuers had $1.1 billion of aggregate principal amount of Senior Secured Notes outstanding.

Spirit increased the commitment under its senior secured revolving credit facility by $60.0 million to $300.0 million during the fourth quarter 2022. As of December 31, 2022, the entire $300 million remained undrawn and available.

Total capital expenditures, including net pre-delivery purchase deposits, for the twelve months ended December 31, 2022, were $246.1 million, primarily related to the purchase of spare parts, including four spare engines, two flight simulators, and expenditures related to the building of Spirit’s new headquarters campus in Dania Beach, Florida.

Top Copyright Photo: Spirit Airlines Airbus A320-271N WL N967NK (msn 11128) LAX (Michael B. Ing). Image: 960027.

Spirit Airlines aircraft photo gallery: