"Spirit Airlines is experiencing operational issues causing flight delays and cancellations due to weather, schedule month change over, and IT outages. Yet, industry tensions are far from over, with many affected workers already taking or ready to take strike action. There was no word of any injuries sustained by passengers. ", "On July 28, 2022, we announced plans to unite with JetBlue Airways Corporation ("JetBlue") to create a compelling national low-fare challenger to the dominant U.S. carriers. Total other (income) expense ($Millions)(3), Total capital expenditures ($Millions)(5). Spirit pilots have said their pay lags behind competitors such as AirTran Airways and JetBlue. Compared to the second quarter 2019, fare revenue per segment increased 25.7 percent to $72.41 and non-ticket revenue per segment increased 22.8 percent to $68.202. (2) Excludes fuel expense and operating special items. Come save with us at spirit.com. Non-GAAP forward-looking measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures. A mechanical engineer and aviation enthusiast dedicated to share some knowledge by creating top-notch content, especially in engineering and aviation topics. During a strike, airlines will often rebook on partner airlines, space permitting. Operating expenses excluding fuel, non-GAAP (2). For the same reasons, the Company is unable to address the probable significance of the unavailable information. The restriction will now last until August 15 at the earliest (although could be extended again) and its understood the sales freeze could also affect long-haul flights on some dates and routes, according to The Times. (AP Photo/Matt Rourke, File). In prior periods, we excluded supplemental rent adjustments related to the modification of aircraft or engine leases from our non-GAAP measures. In addition, it includes the write-off of related deferred financing costs and original issuance discount. EasyJet strikes. The Company believes that adjusting for loss on disposal of assets, special charges (credits), federal excise tax recovery adjustments and accelerated asset retirements is useful to investors because these items are not indicative of the Company's ongoing performance and the adjustments are similar to those made by our peers and allow for enhanced comparability to other airlines. MIRAMAR, Fla., Aug. 9, 2022 /PRNewswire/ -- Spirit Airlines, Inc. ("Spirit" or the "Company") (NYSE: SAVE) today reported second quarter 2022 financial results. Airlines had to ground full fleets, many jobs were cut, and a significant number of pilots were forced to early retirement, which also added pressure on the current pilot shortage. Adjusted There are more than 700 Spirit flight attendants based in Las Vegas, and with a busy summer travel season just around the corner, these flight attendants are sounding the alarm before it gets even worse. The Federal Aviation Administration says the incident happened at 11 a.m.local time Friday and that the agency will investigate. An archive of the webcast will be available under "Events & Presentations" for 60 days. Dozens of angry passengers waited at Spirit ticket counters this week, many vowing never to use the airline again, according to the AP. The objective is to get better working conditions and solutions to ongoing contractual disputes. 1, Adj. Please keep your comments respectful and relevant. Book tax rates were impacted by the exclusion in taxable income of the derivative mark to market credit recorded in the third quarter 2022 related to the 2026 Convertible Notes. Operating special items include the following: Non-operating special items include the following: Refer to the section "Non-GAAP Financial Measures" for additional information. This is not true. Net income (loss) per share, diluted (3). 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Additional information concerning certain factors is contained in the Company's Securities and Exchange Commission filings, including but not limited to the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Browse in private with Firefox, Chrome and Safari. of any outstanding equity awards and warrants. Merger Agreement with JetBlue As previously announced, Spirit Airlines, Inc. entered into a merger agreement with JetBlue Airways Corporation on July 28, 2022. Copyright 2020 Factors include, among others, the extent of the impact of the COVID-19 pandemic on the Company's business, results of operations and financial condition, and the extent of the impact of the COVID-19 pandemic on overall demand for air travel, restrictions on the Company's business by accepting financing under the CARES Act and other related legislation, the competitive environment in our industry, our ability to keep costs low and the impact of worldwide economic conditions, including the impact of economic cycles or downturns on customer travel behavior, the consummation of the merger with JetBlue and other factors, as described in the Company's filings with the Securities and Exchange Commission, including the detailed factors discussed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as supplemented in the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2022. Compared to the second quarter 2019, these increases were primarily driven by increases in flight volume, additional aircraft, higher fuel prices and inflationary wage pressures. Finally, British Airways staff accepted a new pay offer and called off the planned strike at Londons Heathrow airport. Total capital expenditures assumes all new aircraft deliveries are either delivered under direct leases or financed through sale-leaseback transactions. Load factor for the second quarter 2022 was 86.0 percent, up 1.0 percentage point compared to the second quarter 2019. The Lakewood Scoop posted footage of the passengers making their way off the stricken aircraft as foam is sprayed on the flaming engine. The Company evaluates its financial performance utilizing various accounting principles generally accepted in the United States of America ("GAAP") and non-GAAP financial measures, including Adjusted operating expenses, Adjusted operating income (loss), Adjusted operating margin, Adjusted pre-tax income (loss), Adjusted pre-tax margin, Adjusted net income (loss), Adjusted diluted earnings (loss) per share and Adjusted CASM. If you would like to share a story idea, please submit it here. In prior periods, we excluded supplemental rent adjustments related to the modification of aircraft or engine leases from our non-GAAP measures. https://www.prnewswire.com/news-releases/spirit-airlines-reports-third-quarter-2022-results-301660489.html, Entered into a definitive merger agreement with JetBlue Airways Corporation ("JetBlue") to create the most compelling national low-fare challenger to the dominant U.S. carriers (subject to regulatory approval), Opened new Pilot and Flight Attendant crew bases in Atlanta, Georgia and Miami, Florida and announced it will be adding a new Pilot and Flight Attendant base in Houston, Texas, Opened an aircraft maintenance facility at George Bush Intercontinental Airport to help maintain and service its growing fleet, Announced it will be expanding its network by adding service to San Antonio, Texas in November 2022, Initiated service to Albuquerque, New Mexico, Reno, Nevada, and Boise, Idaho and resumed service to Managua, Nicaragua, As part of its continued commitment to support service members, the Spirit Airlines Charitable Foundation partnered with Honor Flight South Florida to fly 72 veterans in an all-inclusive trip to visit memorials and military landmarks in Washington, D.C. and donated over $150,000 to various other organizations making a meaningful social impact in the communities where we live and work, including supporting the Red Cross in the Hurricane Ian recovery efforts. There was no word of any injuries sustained by passengers. 2022 includes amounts related to the loss on eleven aircraft sale leaseback transactions and the impairment of one spare engine. Excludes any potential change in the mark to market adjustment related to the derivative portion of the 2026 Convertible Notes. Our commitment to paying our team members well and competitively remains unchanged, and we look forward to reaching an agreement with APA quickly so that Americans pilots, too, can benefit from these meaningful enhancements to their pay and quality of life.. For the same reasons, the Company is unable to address the probable significance of the unavailable information. Total revenue per ASM ("TRASM") was 11.07 cents, up 19.3 percent compared to third quarter 2019 on 13.5 percent more capacity. Aircraft utilization in the third quarter 2022 was 10.6 hours, down 15.2 percent compared to the 12.5 hours in the same period of 2019. Fort Lauderdale-bound Flight 3044 was on its takeoff roll shortly before 6 p.m. Saturday when the right engine ingested the bird, the airline said. To avoid complicating things even further, Ryanair staff have come to an agreement for the strike action to take place from Monday to Thursday only. All rights reserved. 2021 includes amounts related to out-of-period interrupted trip expense credits recognized in connection with Federal Excise Tax recovery. Look at the striking airlines web site to see policies and updates. 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The union said the Delta deal will lead to a cumulative $7 billion in pay raises. Spirit says the Airbus A321 en route to Cancun turned back to Philadelphia International Airport out of an abundance of caution after the crew reported a suspected lighting strike.. (5) Excludes operating special items. Second Quarter 2022 ResultsFor the second quarter 2022, Spirit reported a net loss of $52.4 million, or a net loss of $0.48 per diluted share. We exclude aircraft fuel and related taxes and special items from operating expenses to determine Adjusted CASM ex-fuel. Spirit Airlines, Inc. All Rights Reserved. However, we no longer exclude supplemental rent adjustments and, as such, non-GAAP measures for 2019 and 2021 have been revised to reflect this change and no longer exclude any previously reported supplemental rent adjustments. Net income (loss) per share, diluted (3). Operating expenses per available seat mile ("CASM") is a common metric used in the airline industry to measure an airline's cost structure and efficiency. Reconciliation of Adjusted Net Income per Share to GAAP Net Income per Share (unaudited) (1), Net income (loss) per share, diluted, as reported, Add: GAAP to non-GAAP diluted weighted average shares difference, Adj. (1) Excludes operating special items. Stay prepared. Adjusted operating expenses and adjusted pre-tax margin are non-GAAP financial measures, which are provided on a forward-looking basis. "A few news outlets have incorrectly reported that this may be due to a strike. Ended the first quarter 2022 with $1.6 billion of unrestricted cash, cash equivalents, short-term investment securities and liquidity available under the Company's revolving credit facility. Merger Agreement with JetBlueOn October 19, 2022, Spirit stockholders voted to approve the merger agreement between Spirit and JetBlue that was entered into on July 28, 2022. We make it possible for our Guests to venture further and discover more than ever before. Spirit Airlines said Monday that it still supports Frontier Airlines $2.9bn takeover bid for the airline, saying it was more likely to win regulatory approval than Daily News Updates Travel Mole Newsletter is a subscriber only travel trade news publication. Spirit pilots rejected an offer would have paid senior captains over US$200,000 a year, Spirit airlines Chief Executive Ben Baldanza said in the statement. Join Saver$ Club Join for access to our Forward-looking statements include, without limitation, guidance for 2022 and statements regarding the Company's intentions and expectations regarding revenues, cash burn, capacity and passenger demand, additional financing, capital spending, operating costs and expenses, taxes, EBITDA, EBITDA margin, hiring, aircraft deliveries and stakeholders, vendors and government support. External site may not meet accessibility requirements. Did you encounter any technical issues? Adjusted operating expenses and adjusted operating margin are non-GAAP financial measures, which are provided on a forward-looking basis. Sign up to receive the latest financial news and events by email. (2) See "Special Items" for more details. The captain braked safely and brought the plane to a stop, received an indication of damage to the engine, and ordered an evacuation in accordance with our standard procedures, a Spirit spokesperson told the Post. Investors are encouraged to read the Company's periodic and current reports filed with or furnished to the Securities and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, for additional information regarding the Company. The Las Vegas protest follows two other attempts to alert management of its empty promises. Flight attendants also picketed in Orlando, Florida and Dallas, Texas this past week. John Laughter, the Atlanta-based airline's chief of operations, said the contract "recognizes our pilots contributions to Delta. He said the airline set out to reach a deal that keeps Delta as a top destination for aviation employees. The aircraft landed safely, and we are currently working to reaccommodate our guests, Spirit said in a statement to CNN. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "could," "would," "expect," "plan," "anticipate," "believe," "estimate," "project," "predict," "potential," and similar expressions intended to identify forward-looking statements. Conference Call/Webcast DetailSpirit will conduct a conference call to discuss these results tomorrow, August 10, 2022, at 8:30 a.m. Eastern US Time. The association said it leaves Spirit flight attendants burdened with picking up the pieces. Operating expenses per available seat mile ("CASM") is a common metric used in the airline industry to measure an airline's cost structure and efficiency. A Spirit Airlines agent has been suspended following a physical altercation with a female passenger who directed slurs at the airline employee at Dallas Fort Worth Airport on Thursday. Listen 4:52. Although the Company was profitable on an adjusted net income basis in the third quarter 2022, the 2025 convertible shares were anti-dilutive and therefore excluded from the weighted-average diluted share count used to calculate adjusted net income per diluted share for the third quarter 2022. We finished the quarter on a strong note with a 98.8 percent completion factor for June. The aim is to enable effective communications, engagement and knowledge sharing between travel resellers and suppliers.. Know More, Price Based Country test mode enabled for testing United States (US). While routes inside Spain will be the most affected, it is believed that routes out of the country will also be affected. (2) See "Calculation of Total Non-Ticket Revenue per Passenger Flight Segment" table below for more details. Non-GAAP forward-looking measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures. A live audio webcast of the conference call will be available to the public on a listen-only basis at http://ir.spirit.com. Spirit ended third quarter 2022 with unrestricted cash, cash equivalents, short-term investment securities and liquidity available under the Company's revolving credit facility of $1.3 billion. The flight was bound for Fort Lauderdale when the captain made an emergency stop Your email address will not be published. Log in to your WTOP account for notifications and alerts customized for you. See Special Items table for more details. 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The current environment in the airline industry is definitely making air travel complicated for many people. All rights reserved. On the operations side, following a rough start to the quarter, we implemented key operational changes and quickly saw meaningful improvements in our operational reliability and recoverability. There could be significant risks and uncertainties that could cause actual results to differ materially, including the risk factors discussed in the Company's reports on file with the Securities and Exchange Commission. 2022 includes legal, advisory, and other fees related to the former Agreement and Plan of Merger with Frontier Group Holdings, Inc. and Top Gun Acquisition Corp. (the "Frontier Merger Agreement"), the unsolicited proposal by JetBlue to acquire all of the Company's outstanding shares in an all-cash transaction, and the Agreement and Plan of Merger with JetBlue and Sundown Acquisition Corp. (the "JetBlue Merger Agreement"). Reconciliation of Adjusted Operating Expenses to GAAP Operating Expenses, (in thousands, except CASM data in cents), Less: Operating special items expense (credit), Adj. Refer to the section "Non-GAAP Financial Measures" for additional information. The Company believes that providing analysis of financial and operational performance compared to second quarter 2019 is a more relevant measure of performance than comparing to second quarter 2021 due to the severe impacts from the COVID-19 pandemic on the Company's financial results and operational performance for 2021. Entertainment Spirit and JetBlue expect to conclude the regulatory process and close the transaction no later than the first half of 2024. Net income (loss) per share, diluted, "The business performed well against a set of negative headwinds during the third quarter 2022, including much higher fuel costs, Hurricane Ian, and Florida capacity constraints. Spirit Airlines Spirit flight attendants protest at Las Vegas airport on Friday, Flight attendants demand Spirit to stop stranding passengers and crew across the country, Flight attendants with Spirit Airlines held a protest outside Harry Reid International Airport Friday to urge the company to get the operation together., Man visiting Las Vegas for sons bachelor party hits slot jackpot at Strip casino, Police: Juvenile finds both parents dead at North Las Vegas home, Las Vegas set to hold worlds largest rockabilly event, Las Vegas gentlemens club to be subject of new reality TV show, ONLY ON FOX5: Rover cam captures ending of pursuit that leads to police shooting in Henderson, Criminal defense attorney echoes judges words about self-representation of suspect in journalist slaying, Nevada Legislature bill would revise deadline for mail-in ballots. Results are based on preliminary data compared to major and regional U.S. airlines. The aircraft landed safely, and we are currently working to reaccommodate our guests, Spirit said in a statement to CNN. Despite the large number of aircraft deliveries over the next few months, we remain confident we will continue to see gradual improvement in fleet utilization in the fourth quarter and throughout the first half of next year, reaching full utilization around mid-summer 2023," said Scott Haralson, Spirit's Chief Financial Officer. An archive of the webcast will be available under "Events & Presentations" for 60 days. The Treasury Stock Method will be used to determine the dilutive impact of any outstanding equity awards and warrants. Enter your email and get curated content straight to your inbox! "The constraints limiting our ability to optimize our network continue to be a headwind to reaching full utilization; that said, our team is doing a great job running a reliable, on-time operation and minimizing the impacts of these constraints. KTVZ NewsChannel 21 is committed to providing a forum for civil and constructive conversation. Spirit is processing future flight credits for customers for the full amount of their unflown fight purchase, and is also giving them a US$100 future flight credit, says the companys web site. In periods where the amount of 2025 Convertible Notes (the "Notes") outstanding remains unchanged from the third quarter 2022 and the Company is profitable, the Notes could have a dilutive impact of approximately 2.0 million on the weighted average diluted shares outstanding. While the low-cost carrier has mentioned they do not expect the strike to cause major disruptions, services from major cities like Madrid, Barcelona, Malaga, Alicante, Seville, and Palma de Mallorca will be affected. Standard strike action and the so-called wildcat strike (usually pilots and flight attendants calling in sick) are nothing new, which is why insurance services have been adapted to cover passengers on different situations. Discovery Company. A Warner Bros. total other (income) expense (4), Adj. We are the leader in providing customizable travel options starting with an unbundled fare. Our heartfelt thoughts go out to all those in our home state still suffering from the devastating impacts of Hurricane Ian.". See Special Items table for more details. For the third quarter 2022, Spirit reported a net loss of $36.4 million, or a net loss of $0.33 per diluted share. (5) 2022 includes legal, advisory, and other fees related to the Agreement and Plan of Merger (the "Merger Agreement") with Frontier Group Holdings, Inc. and the unsolicited proposal by JetBlue to acquire all of the Company's outstanding shares in an all-cash transaction. And further strikes have been planned by the employees of low-cost carrier Ryanair, British Airways, and other major airlines. Baldanza said in an interview that he hoped to get some of Spirits 31 aircraft flying soon with management pilots or others who cross the picket line, but no such flights have yet taken place. In addition, 2022 includes costs associated with the retention bonus program under the Merger Agreement. Moreover, customer satisfaction is at the top of the priority list for the airline industry as well as safety for the whole aviation industry. Additional information concerning certain factors is contained in the Company's Securities and Exchange Commission filings, including but not limited to the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. The Company does not provide a reconciliation of forward-looking measures on a forward-looking basis where the Company believes such reconciliation would imply a degree of precision and certainty that could be confusing to investors and is unable to reasonably predict certain items included in/excluded from the non-GAAP financial measures without unreasonable efforts. In addition, the 2020 Adjusted Provision excludes the discrete item described in footnote 1. (AP Photo/Matt Rourke, File) The FAA is investigating an emergency landing by a Spirit Airlines flight after the crew reported the aircraft was struck by lightning twice just after takeoff from Philadelphia. LAS VEGAS, Nev. (FOX5) - Flight attendants with Spirit Airlines held a protest outside Harry Reid International Airport Friday to urge the company to get the operation together.. The Federal Aviation Administration says the incident happened at 11 a.m.local time Friday and that the agency will investigate. The Company believes that providing analysis of financial and operational performance compared to third quarter 2019 is a more relevant measure of performance than comparing to third quarter 2021 due to the severe impacts from the COVID-19 pandemic on the Company's financial results and operational performance for 2021. We were struck by lightning twice, said the crew. We also believe that excluding fuel costs from certain measures is useful to investors because it provides an additional measure of management's performance excluding the effects of a significant cost item over which management has limited influence and increases comparability with other airlines that also provide a similar metric. Revenue passenger miles (RPMs) (thousands), Total operating revenue per ASM (TRASM) (cents), Fare revenue per passenger flight segment ($), Non-ticket revenue per passenger flight segment ($), Total revenue per passenger flight segment ($), Average daily aircraft utilization (hours). Spirit Airlines, Inc. ("Spirit" or the "Company") (NYSE: SAVE) today issued the following update regarding its ongoing discussions with Frontier Group Holdings, Inc. ("Frontier") (NASDAQ: ULCC), parent company of Frontier Airlines, Inc., and JetBlue Airways Corporation ("JetBlue") (NASDAQ: JBLU): Ted Christie, President and CEO of Spirit, said, We've received your submission. Tiny Spirit is best known in the industry for its low fares and for its controversial plan announced in April to begin charging up to US$45 for carry-on bags. Further strikes are expected in countries like Portugal during the month of August, where civil aviation workers at two unions will strike over wages and safety levels, thus affecting airports in cities like Lisbon, Porto, Faro, Madeira, Beja, Flores, Horta, Ponta Delgada and Santa Maria. Forward-looking statements are based on our management's beliefs and assumptions and on information currently available to our management. Spirit Airlines (NYSE: SAVE) is committed to delivering the best value in the sky. For the full year 2022, the Company estimates its weighted average diluted share count will be 108.8 million. And, our completion factor for July was 99.7 percent, including 15 days of 100 percent completion factor," said Ted Christie, Spirit's President and Chief Executive Officer. I agree to receive the newsletter and I know that I can unsubscribe at any time. All statements other than statements of historical facts are "forward-looking statements" for purposes of these provisions. The strike is being closely watched in the industry because pilots at much larger carriers are also locked in tough negotiations. 2019 includes amounts primarily related to the disposal of excess and obsolete inventory. The Company ended the quarter with 180 aircraft in its fleet, an increase of 33.3 percent since the end of second quarter 2019. It usually means that they will have their flights delayed or even canceled, and often times there is no clear solution to their situation.
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