Spirit Airlines Announces Another Loss

A Spirit Airlines Airbus A321neo that's been newly delivered to the airline

Spirit Airlines has announced an operating loss of USD 189 million for the third quarter, a substantial increase from the same quarter one year prior.

Breaking Down The Third Quarter Performance

Spirit Airlines says a disappointing outcome was recorded for the third quarter after seeing softer demand for their product and discounted fares in specific markets.

Overall, the net loss for the quarter came in at USD 158 million. With operating revenue declining by 6.3% year on year and expenses growing, it was a struggle for the carrier.

Aside from financial performance, Spirit Airlines says overall capacity grew over 2022 performance while load factor fell by 1.9%.

Spirit Airlines is a carrier impacted by the ongoing engine crisis affecting Pratt & Whitney engines on Airbus aircraft.

Problems To Continue Looking Ahead?

While the third quarter performance for the low-cost U.S. airline was poor, the expectation is that it’ll continue.

The chief financial officer flagged the continued rise of fuel prices and engine availability. These are two fundamental causes for concerns slated to impact their fourth-quarter performance.

Away from aircraft, Spirit warned that they’ll continue to see discounted fares for travel booked through the pre-Thanksgiving period.

On top of this, there’s also the expectation that they will not see the anticipated return to expected demand and pricing environment by the peak holiday season.

In an earnings release and with quotes, executives highlighted that they’ll be evaluating their future growth profile and competitive position.

Through this review, they’ll potentially view the modification of aircraft deliveries.

Additionally, there could be a view to slow down capacity growth soon to combat the current effects they’re seeing.

Comments From Spirit Airlines Executive

In addition to a softer-than-expected demand environment, we continue to be challenged by higher fuel prices and NEO engine availability issues and are expecting our margins in the fourth quarter will be lower than we reported for the third quarter 2023. We recognize this financial performance is not acceptable, and we are taking action. In addition to evaluating different strategies to drive higher revenue per departure, we have identified $100 million of structural cost reductions and are evaluating how best to capture those savings in 2024. Our team is resilient and nimble, and we are committed to returning Spirit to sustained profitability.

Scott Haralson, Spirit’s Chief Financial Officer.

Looking At Spirit’s Fleet

Spirit Airlines says during the third quarter, it was able to take delivery of three new Airbus A320neo aircraft.

Away from the A320neo, five new Airbus A321neos were also delivered to the company.

As part of the new aircraft arriving, it said goodbye to four A319ceo from the previous generation.

All up, it ended the third quarter with a total of 202 aircraft in its fleet.

Daniel Fowkes
27 Oct 2023
· Airlines 

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  1. If Spirits want to see improvements in their finances, they should reconsider their fate to Haiti (Cap Haitian). They are insanely charging around $1.300 for about 1hour flight from
    FFL to Cap-Haitian. This is inhuman. The same flight to Dominican Republic on the same island is roughly $300. Spirits do not offer any services whatsoever to the passengers. Besides the insanely high fare prices, passengers pay for every ounce of luggage. Be human with Haitians and see the results in two quarters

  2. I know many people who will never fly Spirit again including myself. I fly about every 8-10 weeks and mostly fly Spirit
    Never again!!! They don’t know how to treat their customers. I have had a few issues with this airline and the last issue was the one that I made my decision never to fly them again. They are terrible.

    1. Same here! I had a very bad experience with some staff. They were very rude the flight attendants were the worst. It’s like they hated there job. I don’t fly that much maybe 3-4/times a year. Usually fly delta and jet blue. I’ve seen great customer service. I’m management in the hospitality business. The aircraft seats on spirit are so thin they’re uncomfortable as heck. But anyway, why doesn’t Jet Blue buy them and take over. And yes I get why it didn’t happen. But like for real Spirit is horrible. The only thing good is they they only Fly Airbus aircraft and I’m a fan of Airbus over Boeing.

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