Spirit Airlines Reports First Quarter 2024 Results

DALLAS — Spirit Airlines (NK) has disclosed its Q1 2024 financial result, showing how strategic and tactical modifications have positively influenced unit revenue, and cost-saving measures are anticipated to provide benefits exceeding US$75 million in 2024, with an estimated annual run-rate savings surpassing US$100 million.

Despite a 230 basis point obstacle from deferred earnings recognition due to a substantial portion of the credits from Pratt & Whitney related to unavailable aircraft for service, the budget carrier reported that quarterly outcomes aligned with expectations.

The declared total operating revenues amounted to US$1,265.5 million, with an operating deficit of US$207.3 million and an operating margin of 16.4%. Adjusted data indicate an operating deficit of US$175.6 million and an operating margin of 13.9%. The net income loss stood at US$142.6 million, with diluted earnings per share at US$1.30.

Confidence amid Challenges

Ted Christie, Spirit's President and CEO, recognized the Q1 2024 loss but expressed confidence about the firm's progression towards its financial objectives. He expressed gratitude to the Spirit team for their commitment to delivering reliable service and value to their customers.

Despite the challenging competitive landscape due to heightened capacity in numerous markets, we see the airline remaining optimistic that its strategic modifications and cost-saving measures will enable it to compete effectively.

The quarter's operational performance was negatively affected by adverse weather and air traffic control-related delays, particularly along the Eastern seaboard and in Florida, as well as persistent civil unrest in Cap-Haitien and Port-au-Prince, Haiti.

However, the airline's system completion factor was 98.7%, and the system controllable completion factor was 99.9%. There was a 2.1% year-over-year capacity increase. Further, the load factor was 80.7%, a marginal decrease of 0.1 pts year over year, and aircraft utilization was 10.4 hours.