Spirit Airlines announces record third quarter

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By TESTCustomwebLP TESTCustomwebLP October 29, 2014 17:10

Spirit Airlines announces record third quarter

During the third quarter of 2014, Spirit Airlines reported adjusted net income increased 27.6% to $73.9 million ($1.01 per diluted share) compared to $57.9 million ($0.79 per diluted share) for the third quarter 20131. GAAP net income for the third quarter 2014 was $67.0 million ($0.91 per diluted share) compared to $61.1 million ($0.84 per diluted share) in the third quarter 2013.

For the third quarter 2014, Spirit delivered a record adjusted pre-tax margin of 21.3% compared to 20.3% over the same period in 20131. On a GAAP basis, pre-tax margin for the third quarter 2014 was 19.3% compared to 21.4% in the third quarter 2013.

Spirit ended the third quarter 2014 with $588.5 million in unrestricted cash.

Spirit’s return on invested capital (before taxes and excluding special items) for the twelve months ended September 30, 2014 was 31.6%.

“I want to say thank you to our team members for their contributions to our strong third quarter performance, achieving a record third quarter adjusted operating margin of 21.3 percent3,” said Ben Baldanza, Spirit’s Chief Executive Officer. “During the third quarter, the benefits of improved operational performance helped to offset cost pressures which included additional pilot costs as a result of new crew duty and rest rules as mandated under FAR 117 and the phasing of our growth. Our Bare Fare™ plus Frill Control™ business model continues to perform very well, and we are excited about the new markets we have planned for next year and are committed to successfully execute on our growth plans.”

For the third quarter 2014, Spirit’s total operating revenue was $519.8 million, an increase of 13.8% compared to the third quarter 2013. The increase was primarily driven by the growth in flight volume and higher operating yields.

Total revenue per available seat mile (“RASM”) for the third quarter 2014 was 12.45 cents, a decrease of 0.8% compared to the third quarter 2013. A year-over-year increase in average stage length for the third quarter 2014 contributed 0.4 percentage points to the decline in RASM. In addition, average load factor for the third quarter 2014 declined 1.5 pts, in part due to increased margin accretive flying on non-peak travel days (Tuesday/Wednesday), contributing to the decrease in RASM.

Total operating expenses for the third quarter 2014, excluding $10.4 million of special items, increased 12.5% to $409.2 million on a capacity increase of 14.7%. Including special items, total operating expenses increased 16.9% year over year to $419.6 million.

Spirit reported third quarter 2014 cost per available seat mile excluding special items and fuel (“Adjusted CASM ex-fuel”) of 5.92 cents, an increase of 1.0% compared to the same period last year. Higher salary, wages, and benefits, landing fees and other rents, and depreciation and amortization per ASM were partially offset by lower passenger re-accommodation expense as a result of improved operational reliability.

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By TESTCustomwebLP TESTCustomwebLP October 29, 2014 17:10