{"id":519433,"date":"2021-07-28T17:04:25","date_gmt":"2021-07-28T21:04:25","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/spirit-airlines-reports-second-quarter-2021-results\/"},"modified":"2021-07-28T17:04:25","modified_gmt":"2021-07-28T21:04:25","slug":"spirit-airlines-reports-second-quarter-2021-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/spirit-airlines-reports-second-quarter-2021-results\/","title":{"rendered":"Spirit Airlines Reports Second Quarter 2021 Results"},"content":{"rendered":"
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PR Newswire<\/p>\n<\/p><\/div>\n

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\n MIRAMAR, Fla.<\/span>, July 28, 2021<\/span> \/PRNewswire\/ — Spirit Airlines, Inc. (NYSE: SAVE) today reported second quarter 2021 financial results. <\/p>\n

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\n \"(PRNewsfoto\/Spirit
\n <\/a>\n <\/p>\n<\/p><\/div>\n

Ended the second quarter 2021 with $2.2 billion<\/span> of unrestricted cash, cash equivalents, short-term investment securities and liquidity available under the Company’s revolving credit facility<\/p>\n

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\n As Reported<\/u>
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\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

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\n Second Quarter 2021<\/u>
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\n \u00a0\u00a0\u00a0\u00a0 <\/b>
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\n Second Quarter 2020<\/u>
\n <\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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\n
\n
\n Second Quarter 2019<\/u>
\n <\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

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\n Total Operating Revenues<\/span>\n <\/p>\n<\/td>\n

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\n $859.3 million<\/span>\n <\/p>\n<\/td>\n

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\n $138.5 million<\/span>\n <\/p>\n<\/td>\n

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\n $1,013.0 million<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

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\n Pre-tax Income (Loss)<\/span>\n <\/p>\n<\/td>\n

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\n $(273.3) million<\/span>\n <\/p>\n<\/td>\n

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\n $(212.5) million<\/span>\n <\/p>\n<\/td>\n

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\n $148.6 Million<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

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\n Net Income (Loss)<\/span>\n <\/p>\n<\/td>\n

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\n $(287.9) million<\/span>\n <\/p>\n<\/td>\n

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\n $(144.4) million<\/span>\n <\/p>\n<\/td>\n

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\n $114.5 million<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

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\n Diluted Earnings (Loss) Per Share<\/span>\n <\/p>\n<\/td>\n

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\n $(2.73)<\/span>\n <\/p>\n<\/td>\n

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\n $(1.81)<\/span>\n <\/p>\n<\/td>\n

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\n $1.67<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

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\n Adjusted<\/u>
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\n 1<\/sup>
\n <\/b>\u00a0Second <\/u><\/b><\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
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\n Second Quarter 2021<\/u>
\n <\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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\n Quarter 2020<\/u>
\n <\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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\n Second Quarter 2019<\/u>
\n <\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

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\n Adjusted EBITDA<\/span>\n <\/p>\n<\/td>\n

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\n $62.1 million<\/span>\n <\/p>\n<\/td>\n

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\n $(273.2) million<\/span>\n <\/p>\n<\/td>\n

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\n $220.4 million<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

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\n Adjusted EBITDA Margin<\/span>\n <\/p>\n<\/td>\n

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\n 7.2%<\/span>\n <\/p>\n<\/td>\n

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\n (197.2)%<\/span>\n <\/p>\n<\/td>\n

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\n 21.8%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

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\n Adjusted Pre-tax Income (Loss)<\/span>\n <\/p>\n<\/td>\n

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\n $(44.7) million<\/span>\n <\/p>\n<\/td>\n

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\n $(364.4) million<\/span>\n <\/p>\n<\/td>\n

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\n $150.1 million<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

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\n Adjusted Net Income (Loss)<\/span>\n <\/p>\n<\/td>\n

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\n $(36.3) million<\/span>\n <\/p>\n<\/td>\n

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\n $(285.8) million<\/span>\n <\/p>\n<\/td>\n

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\n $115.7 million<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

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\n Adjusted Net Income (Loss) Per Share, Diluted<\/span>\n <\/p>\n<\/td>\n

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\n $(0.34)<\/span>\n <\/p>\n<\/td>\n

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\n $(3.59)<\/span>\n <\/p>\n<\/td>\n

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\n $1.69<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

“I thank our Team Members for their outstanding efforts as we work toward bringing our level of operations up to full utilization. In June 2021<\/span>, we recorded our first month with adjusted net earnings since the onset of the COVID-19 pandemic. Due to our strategic execution and improving demand backdrop, our second quarter 2021 financial results were among the best in the industry,” said Ted Christie<\/span>, Spirit’s President and Chief Executive Officer. “We remain very well-positioned to stimulate markets and capture the significant market opportunities in the domestic U.S. and near-field international marketplace.”<\/p>\n

\n COVID-19
<\/i>Since its initial onset in early 2020, the impact of the COVID-19 pandemic has evolved and continues to be fluid. Therefore, the Company’s financial and operational outlook remains subject to change. The Company continues to monitor the impact of the pandemic on its operations and financial condition, and to adjust its mitigation and operational strategies accordingly. Spirit has implemented measures for the safety of its Guests and Team Members as well as to mitigate the impact of COVID-19 on its financial position and operations. Please see the Company’s Quarterly Report on Form 10-Q for the period ending June 30, 2021<\/span> for additional disclosures regarding these measures.<\/p>\n

The Company believes that providing analysis of financial and operational performance compared to second quarter 2019 is a more relevant measure of performance due to the severe impacts from the COVID-19 pandemic on our financial results and operational performance for 2020.<\/p>\n

\n Capacity and Operations
<\/i>Load factor for the second quarter 2021 was 84.4 percent, down 0.6 percentage points compared to the second quarter 2019. Capacity for the second quarter 2021 was down 5.1 percent compared to the second quarter 2019.<\/p>\n

During the second quarter 2021, numerous weather systems impacted the Company’s network. Despite the adverse weather conditions, Spirit maintained its strong operational reliability and achieved a DOT on-time performance2<\/sup> of 78.3 percent and a Completion Factor2<\/sup> of 99.3 percent. <\/p>\n

\n Revenue Performance
<\/i>Total operating revenues for the second quarter 2021 were $859.3 million<\/span>, a decrease of 15.2 percent versus second quarter 2019. Although load factors for the second quarter 2021 were in line with pre- pandemic levels, total operating yields were down 10.0 percent compared to the second quarter 2019. However, demand trends in Spirit’s domestic and international markets saw marked improvement as the second quarter 2021 progressed such that June 2021<\/span> operating yields were about flat compared to June 2019<\/span>. Compared to the first quarter 2021, improvement in operating yields helped to drive an 86.3 percent sequential improvement in total revenues relative to only a 28 percent increase in capacity.<\/p>\n

For the second quarter 2021, total revenue per passenger flight segment (“Segment”) decreased 9.4 percent compared to the same period in 2019 to $102.48<\/span>. Fare revenue per Segment decreased 23.5 percent compared to the second quarter 2019 to $44.09<\/span>. The Company continues to drive improvements in non-ticket revenue per Segment. Non-ticket revenue per Segment increased $2.85<\/span> compared to the second quarter 2019 to $58.39<\/span>3<\/sup>. Enhanced product offerings, improved merchandising and realized benefits from revenue management contributed to these results.<\/p>\n

\n Cost Performance
<\/i>For the second quarter 2021, total GAAP operating expenses decreased 9.8 percent compared to the second quarter 2019 to $766.1 million<\/span>, primarily due to the grant component of the funding received through the payroll support program (further discussed below). Adjusted operating expenses for the second quarter 2021 increased 2.6 percent compared to the second quarter 2019 to $869.2 million<\/span>4<\/sup>. Excluding fuel, adjusted operating expenses came in better than expected primarily due to a) strong operational performance resulting in better crew utilization and less passenger disruption expense; b) airport use fees increasing at a slightly slower rate than initially assumed as the industry returned capacity to the marketplace; and c) timing of events. Compared to the second quarter 2019, adjusted operating expenses excluding fuel increased 12.3 percent4<\/sup>, driven primarily by higher salaries, wages and benefits, higher depreciation and amortization, and higher landing fees and other rents. Compared to the second quarter 2019 the increase in salaries, wages and benefits was primarily driven by a 24 percent increase in the number of pilots, a 14 percent increase in the number of flight attendants, and inflationary rate pressures. Higher depreciation and amortization expense compared to the second quarter 2019 was driven by the purchase of additional aircraft and the amortization of heavy maintenance events. Additionally, the increase in landing fees and other rents was due to higher average rates, driven by inflationary pressures as well as increased market share at certain airports where other airlines have decreased flying due to the impact of COVID-19 on demand.<\/p>\n

“I want to thank our team members for taking care of our Guests by running a great airline this quarter. As we have begun to ramp the airline for growth, our team has once again proven to be up to the challenge. With our strategic deployment of assets, an improving demand environment and our strong operational results, we were one of the few airlines to produce positive adjusted EBITDA in the second quarter. We continue to be emboldened by the value of the ultra-low-cost model, our valuable network, and our strong operational performance,” said Scott Haralson<\/span>, Spirit’s Chief Financial Officer. “These pillars create a strong platform for us to continue to drive sustainable, long-term value for our shareholders.”<\/p>\n

\n Fleet
<\/i>Spirit took delivery of five new A320neo aircraft during the second quarter 2021, three of which were financed through direct operating leases, and two under sale lease back transactions. In addition, the Company purchased two A319ceo aircraft off lease. The Company ended the quarter with 164 aircraft in its fleet.<\/p>\n

\n Liquidity and Capital Deployment
<\/i>Spirit ended second quarter 2021 with unrestricted cash, cash equivalents, short-term investment securities and liquidity available under the Company’s revolving credit facility of $2.2 billion<\/span>.<\/p>\n

Total capital expenditures for the second quarter 2021 were approximately $168 million<\/span>, primarily related to pre-delivery deposits associated with future aircraft deliveries and the purchase of two A319 aircraft off lease.<\/p>\n

To improve its liquidity and financial position, during the second quarter 2021, the Company entered into a series of liability management transactions given the favorable market dynamics:<\/p>\n