Spirit Airlines has made headlines throughout late 2023 and early 2024, thanks to its acquisition by JetBlue being blocked.
However, the company has published its latest financial results, which have revealed more about the airline, which has struggled to profit for several years.
Additionally, the airline has words for those who have doubted the airline’s long-term position in the industry without a takeover from JetBlue.
Spirit Narrows Losses
Spirit Airlines reported narrowing losses to USD 184 million in the fourth quarter, which, while still a loss, is an improvement as domestic markets continue to improve.
The first quarter of 2024 is also expected to see a loss. However, the airline says revenues will total above analysts’ forecasts.
2023 was a challenging year for Spirit, underpinned by the Pratt & Whitney engine saga that impacted the reliability and capacity of its day-to-day operations. However, analysts argue there’s more to it than that, primarily centring around a business model that struggles to make money.
However, Spirit’s CEO commented on analysts’ views of the airline, saying the belief is that the airline is a hugely misguided narrative.
Adjustments Being Made
In recent years, Spirit Airlines has been forced to massively shift how it operates, wherever possible, to preserve its status within the industry.
This preservation has seen the airline adjust its route network several times to find profitable services and make further cuts. Now, the airline hopes that throughout 2024, it’ll also continue making positive decisions to drive it towards positive cash flow and, thus, profitability.
For budget airlines such as Spirit, a significant focus has been placed on the weaker domestic airfares as another one of the struggles that has hurt the company, among others.
Growth hasn’t been possible to the hoped-for levels because of these factors. During December alone, Spirit said it was being forced at peak to park up to 40 aircraft. However, the hope is things will improve considerably by the end of next year.
Other Notable Moments
Spirit Airlines says while 2023 had its difficulties, the airline introduced the A321neo, which underscores a commitment to the next generation of fleet and ensuring efficiency for the long term.
Additionally, despite network adjustments to try and limit expenses, the airline could still expand its network with new locations and city pairings joining the broader route map.
The 2024 summer schedule will play an essential role in genuinely understanding Spirit Airlines’ future direction as their rejected plans to be taken over by JetBlue are appealed in court.
In the short term, ensuring aircraft return to service and positive steps towards profitability will be paramount.