Reconciliation of Adjusted Net Income per Share to GAAP Net Income per Share (unaudited) (1), Net income (loss) per share, diluted, as reported, Add: GAAP to non-GAAP diluted weighted average shares difference, Adj. "Good cost management and benefits from improved reliability resulted in better-than-expected non-fuel costs for the second quarter, mitigating the majority of the impact from higher-than-expected fuel prices," said Scott Haralson, Spirit's Chief Financial Officer. (2) 2021 includes federal excise tax recovery amounts. ", "On July 28, 2022, we announced plans to unite with JetBlue Airways Corporation ("JetBlue") to create a compelling national low-fare challenger to the dominant U.S. carriers. Spirit Airlines, Inc. All Rights Reserved. Spirit Airlines, Inc. ("Spirit" or the "Company") (NYSE: SAVE) today issued the following update regarding its ongoing discussions with Frontier Group Holdings, Inc. ("Frontier") (NASDAQ: ULCC), parent company of Frontier Airlines, Inc., and JetBlue Airways Corporation ("JetBlue") (NASDAQ: JBLU): Ted Christie, President and CEO of Spirit, said, We also believe that excluding fuel costs from certain measures is useful to investors because it provides an additional measure of management's performance excluding the effects of a significant cost item over which management has limited influence and increases comparability with other airlines that also provide a similar metric. While FOX5 has spoken with travelers frustrated about ongoing flight delays and cancellations, flight attendants tell us they are just as frustrated. The airline did not say how many passengers were on board. This industry-leading contract is the direct result of the Delta pilots unity and resolve, said Darren Hartmann, a pilot and union official. Total revenue per ASM ("TRASM") was 11.07 cents, up 19.3 percent compared to third quarter 2019 on 13.5 percent more capacity. A Spirit Airlines Airbus A319-100, registration N521NK performing flight NK-932 from Las Vegas,NV to Houston Intercontinental,TX (USA), landed on A Spirit Airlines Airbus A321-200, registration N663NK performing flight NK-336 from Orlando,FL to Detroit,MI (USA) with 208 people on board, was in A live audio webcast of the conference call will be available to the public on a listen-only basis at http://ir.spirit.com. Further strikes are expected in countries like Portugal during the month of August, where civil aviation workers at two unions will strike over wages and safety levels, thus affecting airports in cities like Lisbon, Porto, Faro, Madeira, Beja, Flores, Horta, Ponta Delgada and Santa Maria. We also believe that excluding fuel costs from certain measures is useful to investors because it provides an additional measure of management's performance excluding the effects of a significant cost item over which management has limited influence and increases comparability with other airlines that also provide a similar metric. Last October, Spirit Airlines flight NK-3044 was on its way to Fort Lauderdale (FLL), Florida, from Atlantic City, New Jersey, when a bird strike occurred on the aircraft's Spirit Airlines said Monday that it still supports Frontier Airlines $2.9bn takeover bid for the airline, saying it was more likely to win regulatory approval than Factors include, among others, the extent of the impact of the COVID-19 pandemic on the Company's business, results of operations and financial condition, and the extent of the impact of the COVID-19 pandemic on overall demand for air travel, restrictions on the Company's business by accepting financing under the CARES Act and other related legislation, the competitive environment in our industry, our ability to keep costs low and the impact of worldwide economic conditions, including the impact of economic cycles or downturns on customer travel behavior, the consummation of the merger with JetBlue and other factors, as described in the Company's filings with the Securities and Exchange Commission, including the detailed factors discussed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as supplemented in the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended September30, 2022. Since the COVID-19 pandemic, the aviation industry, especially the airline sector, has been under high pressure given the financial impact of the global health crisis. Adjusted pre-tax loss for the second quarter was $38.9 million and adjusted pre-tax margin was negative 2.8 percent. 2 May 2022. All rights reserved. Risks or uncertainties (i) that are not currently known to us, (ii) that we currently deem to be immaterial, or (iii) that could apply to any company, could also materially adversely affect our business, financial condition, or future results. Operating income (loss), non-GAAP (5), Adj. Investors are encouraged to read the Company's periodic and current reports filed with or furnished to the Securities and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, for additional information regarding the Company. In the first half of the year, Spirit Airlines had US$2.33 billion in total operating revenue, a 24.9% growth compared to the same period in 2019, prior to the COVID-19 pandemic. In addition, it includes the write-off of related deferred financing costs and original issuance discount. In prior periods, we excluded supplemental rent adjustments related to the modification of aircraft or engine leases from our non-GAAP measures. Strong demand and sound revenue management coupled with excellent operational reliability and overall cost management helped mitigate the impacts of these headwinds. You can also buy trip insurance but you will only be protected generally if your airline hasnt threatened a strike and is not currently under a strike. The union said the Delta deal will lead to a cumulative $7 billion in pay raises. I agree to receive the newsletter and I know that I can unsubscribe at any time. Spirit Airlines, Inc. All Rights Reserved. As a result, the airline has halted ticket sales for short-haul flights from Heathrow amid pressure to cancel flights. On march 10, 2022, i purchased a round trip flight ticket for spirit airlines routed trough a company called gotogate from columbus oh to las angeles and back for $490.86. The Company believes that adjusting for loss on disposal of assets, special charges (credits), federal excise tax recovery adjustments and accelerated asset retirements is useful to investors because these items are not indicative of the Company's ongoing performance and the adjustments are similar to those made by our peers and allow for enhanced comparability to other airlines. Merger Agreement with JetBlue As previously announced, Spirit Airlines, Inc. entered into a merger agreement with JetBlue Airways Corporation on July 28, 2022. In order to display the B2B travel content that meets your business needs, we need to know who are and what are your business needs. (2) Excludes fuel expense and operating special items. Reconciliation of Adjusted Provision (Benefit) for Income Taxes to GAAP Provision (Benefit) for Net Income (unaudited), Provision (benefit) for income taxes, as reported, Less: Net Income (loss) tax impact of special items, Adj. During a strike, airlines will often rebook on partner airlines, space permitting. Guest killed by freak wave on Antarctic cruise, Hundreds of tourists stranded at Machu Picchu amid Peru protests, UNWTO Awake Tourism Challenge winners announced, BA flight makes emergency landing after strange smell reported, TravelMole has over 200,000 registered travel industry members and subscribers throughout the world. Please Log in or, Register to post a comment. For the passenger, this is usually uncomfortable and inconvenient. According to FLIGHTRIGHT website, the amount of the compensation depends on the flight distance and you might be entitled to either 250 , 300 , 400 or 600 .. The Company ended the quarter with 180 aircraft in its fleet, an increase of 33.3 percent since the end of second quarter 2019. Because the non-GAAP financial measures are not calculated in accordance with GAAP, they should not be considered superior to and are not intended to be considered in isolation or as a substitute for the related GAAP financial measures presented in the press release and may not be the same as or comparable to similarly titled measures presented by other companies due to possible differences in the method of calculation and in the items being adjusted. (3) Includes interest expense, capitalized interest, Interest income, and other income and expense. Total GAAP operating expenses for the third quarter 2022 increased 59.1 percent compared to the third quarter 2019 to $1,379.6 million. The information below provides an explanation of certain adjustments reflected in the non-GAAP financial measures and shows a reconciliation of non-GAAP financial measures reported in this press release (other than forward-looking non-GAAP financial measures) to the most directly comparable GAAP financial measures. The Las Vegas protest follows two other attempts to alert management of its empty promises. Flight attendants also picketed in Orlando, Florida and Dallas, Texas this past week. We've received your submission. We were struck by lightning twice, said the crew. The captain braked safely and brought the plane to a stop, received an indication of damage to the engine, and ordered an evacuation in accordance with our standard procedures, a Spirit spokesperson told the Post. Excluding special items, adjusted net loss for the second quarter 2022 was $32.2 million1, or an adjusted net loss of $0.30 per diluted share1. Spirit undertakes no duty to update any forward-looking statements or estimates. One of the primary limiters is the continued constraint on U.S. continental flights to/from Florida. Excluding special items, adjusted net income for the third quarter 2022 was $3.6 million1, or an adjusted net income of $0.03 per diluted share1. All rights reserved. The passengers were set to receive refunds, travel vouchers, and the option of traveling on another flight to Fort Lauderdale following the bird strike, the Spirit rep said. In addition, it includes the write-off of related deferred financing costs and original issuance discount. Total capital expenditures, including net pre-delivery purchase deposits, for the nine months ended September30, 2022, were $190.4 million, primarily related to the purchase of spare parts, including three spare engines, two flight simulators, and expenditures related to the building of Spirit's new facilities in Dania Beach, Florida. Airlines have issued travel waivers for many parts of the US allowing passengers to rebook without penalty for a short window. Operating expenses per available seat mile ("CASM") is a common metric used in the airline industry to measure an airline's cost structure and efficiency. Adjusted pre-tax loss for the third quarter was $1.2 million1 and adjusted pre-tax margin was negative 0.1 percent1. Recently, Spirit Airlines released its financial reports for the second quarter of 2022. See Special Items table for more details. Our heartfelt thoughts go out to all those in our home state still suffering from the devastating impacts of Hurricane Ian.". (1) 2021 includes amounts related to accelerated depreciation. This allows our Guests to pay only for the options they choose like bags, seat assignments and refreshments something we call La Smarte. However, we no longer exclude supplemental rent adjustments and, as such, non-GAAP measures for 2021 have been revised to reflect this change and no longer exclude any previously reported supplemental rent adjustments. A strike started in July as hundreds of Heathrow customer service agents decided to take action. Yet, industry tensions are far from over, with many affected workers already taking or ready to take strike action. 2019 includes amounts primarily related to the disposal of excess and obsolete inventory. Provision (benefit) for income taxes, net, non-GAAP (1). External site may not meet accessibility requirements. Spirit undertakes no duty to update any forward-looking statements or estimates. Adding to the pressure the airline industry is experiencing in Spain, Spanish Ryanair cabin crew members will go on strike every week, from August 8 until January 7, 2023. (3) 2021 includes amounts related to out-of-period interrupted trip expense credits recognized in connection with Federal Excise Tax recovery. For the same reasons, the Company is unable to address the probable significance of the unavailable information. (3) See "Reconciliation of Adjusted Operating Expenses to GAAP Operating Expenses" table below for more details. Fort Lauderdale-Hollywood International Airport is Spirits main hub, where it is the only airline to 14 international cities and five US destinations, airport spokesman Greg Meyer said. The strike is being closely watched in the industry because pilots at much larger carriers are also locked in tough negotiations. 5425 Wisconsin Ave EasyJet pilots in Spain have planned strike dates on August 12 to 14, 19 to 21 and 27 to 29, 2022. Spirit says the Airbus A321 en route to Cancun turned back to Philadelphia International Airport out of an abundance of caution after the crew reported a suspected lighting strike.. Adjusted Operating expenses ($Millions)(1), Total other (income) expense ($Millions)(3), Total capital expenditures ($Millions)(5). (6) 2021 includes amounts primarily related to the premiums paid to early extinguish a portion of the Company's 2025 Convertible Notes and the 8.00% Senior Secured Notes. Listen 4:52. Join Saver$ Club Join for access to our Stay prepared. Aircraft utilization in the third quarter 2022 was 10.6 hours, down 15.2 percent compared to the 12.5 hours in the same period of 2019. Geo resource failed to load. Flight attendants with Spirit Airlines held a protest outside Harry Reid International Airport Friday to urge the company to get the operation together. Severe Weather The Mole has evolved over 20 years to facilitate interesting and relevant curated, easy to digest, content of all types, from a variety of channels, for travel industry professionals. Of course, it is worth keeping in mind that the threat of a strike is just that, a threat. Sign up to receive the latest financial news and events by email. Published: Apr. Refer to the section "Non-GAAP Financial Measures" for additional information. All rights reserved. (1) Excludes special items which may include loss on disposal of assets, special charges and credits, and other items which are not estimable at this time. Such forward-looking statements are subject to risks, uncertainties and other important factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by such forward-looking statements. However, British Airways passengers are still suffering since trip cancellation decisions have not stopped. However, they also explain that for industrial action taken by airport and ground personnel, the airline has no obligation whatsoever. We make it possible for our Guests to venture further and discover more than ever before. In addition, 2022 includes costs associated with the retention bonus program under the Merger Agreement. This website is not intended for users located within the European Economic Area. Moreover, customer satisfaction is at the top of the priority list for the airline industry as well as safety for the whole aviation industry. Spirit results so far in 2022 . Revenue passenger miles (RPMs) (thousands), Total operating revenue per ASM (TRASM) (cents), Fare revenue per passenger flight segment ($), Non-ticket revenue per passenger flight segment ($), Total revenue per passenger flight segment ($), Average daily aircraft utilization (hours). 2019 includes amounts primarily related to the disposal of excess and obsolete inventory. Includes fuel taxes and into-plane fuel cost. I am thrilled we were able to reach an agreement with JetBlue that delivers value for our stockholders, Team Members, and Guests.". The incident, which was captured on video by another passenger, has since received more than 9.6 million views on social media as of Saturday. Right now, some airlines are suffering from airport operation disruptions and difficulties brought by strikes. Finally, British Airways staff accepted a new pay offer and called off the planned strike at Londons Heathrow airport. The Company does not provide a reconciliation of forward-looking measures on a forward-looking basis where the Company believes such reconciliation would imply a degree of precision and certainty that could be confusing to investors and is unable to reasonably predict certain items included in/excluded from the non-GAAP financial measures without unreasonable efforts. We exclude aircraft fuel and related taxes and special items from operating expenses to determine Adjusted CASM ex-fuel. KTVZ-TV FCC Public File | FCC Applications |, Breaking News Third quarter 2022 includes the dilutive impact of outstanding equity awards and warrants. Now, more than two years have passed since the crisis started. (3) Excludes operating and non-operating special items. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Thanks for contacting us. Load factor for the second quarter 2022 was 86.0 percent, up 1.0 percentage point compared to the second quarter 2019. Also, pilots from the Germany-based airline Lufthansa have also voted in favor for strike action, although no effective date have been disclosed. The probable significance of the primary limiters is the direct result of the information... ( 1 ) 2021 includes amounts primarily related to the section `` non-GAAP financial measures '' additional. In addition, it is worth keeping in mind that the threat of a strike is just that, pilot. 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