A Spirit Airlines plane awaits takeoff at LaGuardia Airport in New York
Leslie Josephs/CNBC
Spirit Airlines‘ fourth-quarter loss narrowed to nearly $184 million, but its CEO said the carrier is back on the path to profitability and the domestic air travel market is improving.
The carrier is trying to find its footing after domestic fares fell, a Pratt & Whitney engine issue grounded some of its Airbus its planes and a judge blocked JetBlue Airways‘ planned acquisition of the carrier earlier this year. The two carriers are appealing that decision.
The failed merger has helped drive Spirit’s stock down more than 57% so far this year as investors fretted about Spirit’s financial future. The carrier’s looming debt payments ahead have prompted some calls that the airline could have to restructure, or even liquidate.
On Thursday, Spirit reiterated that it “is aware of its 2025 and 2026 debt maturities and is assessing options to address those maturities when the time is appropriate.”
Here’s what Spirit reported in the fourth quarter compared to what Wall Street expected, based on average estimates compiled by LSEG, formerly known as Refinitiv:
- Adjusted loss per share: $1.36 vs. an expected $1.46
- Total revenue: $1.32 billion vs. an expected $1.32 billion
Spirit’s net loss of $183.65 million, or $1.68 per share, is improvement from a net loss of $270.66 million, or $2.49 per share, during the year-ago quarter. Adjusting for one-time items the carrier reported a net loss of $1.36 per share.
Revenue was down 5% to $1.32 billion.
The budget airline has spent months looking for ways to cut costs, including adjusting its network and shifting its aircraft delivery schedule.
“The Spirit team is 100% clear and focused on the adjustments we are currently deploying and will continue to make throughout 2024 to drive us back to cash flow generation and profitability,” CEO Ted Christie said in an earnings release.
The carrier plans for 2024 capacity to be flat to up mid-single digits compared with last year, Spirit said.
This is breaking news. Check back for updates.
