Spirit Airlines Ends 2022 on a Strong Position

Spirit Airlines reported that its fourth quarter financial results were better than anticipated due to strong demand for air travel.

The total operating revenue of the low-cost carrier reached $1.4 billion in the fourth quarter. This is an increase of 43.5 per cent compared to the fourth quarterly of 2019. It was due to higher flight volumes and better operating yields.

On account of 22.7 percent more capacity, total revenue per available seat mile (TRASM), was 17 percent higher than the fourth quarter 2019. The segment's fare revenue increased 22.1 percent, to $64.31, over the pre-pandemic levels. Non-ticket revenue per section jumped 22.9 percent, to $71.31.

"I want to thank the entire Spirit Team for their contributions in overcoming the many challenges we faced during 2022," Spirit President and CEO Ted Christie mentioned.

"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," Christie added.

Spirit received 10 A320neo aircraft in the fourth quarter 2022. The airline finished the quarter with 194 aircraft, an increase in 33.8 percent from the fourth quarter 2019

Operation-wise, the carrier's load factor stood at 81 percent for the fourth quarter. The Department of Transportation's (DOT's) on-time performance was 73.21% and Completion Factor stood at 97 percent.

Spirit reported a pretax loss of $340.3million and a negative 24.5 percent pretax margin. The adjusted pretax income for fourth quarter was $23.0million and the adjusted pretax margin was 1.7%.

"Leisure demand has remained strong and our team is doing a great job maximizing revenue production," Christie also said. "In the fourth quarter 2022, despite a significant number of weather-related flight cancellations during the peak holiday period, our team delivered better-than-expected unit revenue performance."

 

Source: travelpulse.com