Spirit Airlines has reported a fourth quarter 2023 net loss of $183.7 million or ($1.68) per diluted share on a year-over-year decline in revenue of 5.0 percent to $1.32 billion. For the full year, the carrier reported a net loss of $447.5 million or ($4.10) per diluted share.
On Thursday (February 8, 2024), Spirit Airlines reported their financial results for the fourth quarter and full year ending December 31, 2024. For the fourth quarter, the carrier reported a net loss of $183.7 million of ($1.68) per diluted share on a year-over-year decrease in revenue of 5.0 percent to $1.32 billion. For the full year, Spirit reported a net loss of $447.5 million or ($4.10) per diluted share on a 5.8 percent increase in revenue to $5.36 billion. At December 31, 2023, Spirit Airlines had unrestricted cash, cash equivalents, short-term investments and liquidity under the company’s revolving credit facility totaling $1.3 billion.
In Thursday’s announcement, Spirit Airlines’ President and Chief Executive Officer, Ted Christie, said,
“As we enter 2024, we are beginning to see benefits from the tactical and strategic changes we implemented in 2023. In addition, current booking trends further our confidence that the domestic environment is beginning to rebound. Together with the changes we have made, we estimate this will result in an unprecedented sequential improvement in total revenue per available seat mile (TRASM) from fourth quarter 2023 to first quarter 2024, which supports our view of a domestic recovery in 2024. The Spirit team is 100% clear and focused on the adjustments we are currently deploying and will continue to make throughout 2024 to drive us back to cash flow generation and profitability.
“In addition to operational reliability being a core element of caring for our Guests, it also benefits the top and bottom line. During the fourth quarter 2023 peak holiday period, the Spirit team ran a great operation. We estimate this strong operational performance contributed $10 million of incremental revenue, allowing us to exceed our mid-December revenue guidance for the fourth quarter and deliver cost performance in excess of our expectations. We have continued this operational excellence and finished January 2024 as the No. 2 airline in reliability.”
Spirit’s Q4 2023 total revenue per available seat mile (TRASM) declined 7.3 percent year-over-year to 8.94 cents, while cost per available seat mile (CASM) decreased 3.0 percent to 10.05 cents. Fourth quarter costs excluding fuel (CASM-ex) increased 3.5 percent to 6.75 cents. For the full year 2023, Spirit’s TRASM decreased 7.8 percent to 9.63 cents, while CASM declined 9.9 percent to 10.52 cents, and CASM-ex increased 4.9 percent to 7.06 cents.
During the fourth quarter 2023, Spirit took delivery of four new aircraft, including two Airbus A320neos and two Airbus A321neos, and retired one A319ceo, ending the year with a fleet of 205 aircraft. In December 2023, the carrier completed a sale-and-leaseback transactions for 20 aircraft, with proceeds of $325 used to repay indebtedness on those aircraft, and net cash proceeds of $320 million. In January 2024, Spirit completed sale-and-leaseback transactions for five additional aircraft, resulting in repayment of approximately $140 million on those aircraft and net cash proceeds of around $99 million. In total, these transactions resulted in approximately $419 million in net cash proceeds. Spirit's total CAPEX for 2023 was $232.4 million, primarily related to the construction of Spirit’s new Headquarters Campus in Dania Beach, Florida, the purchase of spare parts, including four spare engines.
Spirit also initiated service to Charleston (South Carolina), Norfolk (Virginia) and San Jose (California) last year, contributing to the inauguration of 54 new routes, bringing the airline’s markets served to over 350 and average daily flights to nearly 830. During 2023, the carrier also inaugurated their first Airbus A320neo, ending 2023 with eight of the type in their fleet, and plans to take deliver of 20 more in 2024. On January 16, 2024, the U.S. Court for the District of Massachusetts granted an Injunction against Spirit’s proposed merger with JetBlue. On January 19, 2024 Spirit and JetBlue filed a notice of appeal to reverse the Injunction, which was granted by the Court of Appeals on February 2, 2024, with arguments to be heard in June 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 205 Airbus A320 Family and A320neo Family aircraft.
In Trading Thursday morning (February 8, 2024), shares in Spirit Airlines, Inc. (NASDAQ: SAVE) were up 2.52 percent to $7.12/share (11:50 AM EST).
Source: Spirit Airlines/PRNewswire