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Spirit Airlines (SAVE) Q2 2022 earnings


Spirit Airlines aircraft on the tarmac at Fort Lauderdale-Hollywood International Airport on February 7, 2022 in Fort Lauderdale, Florida.

Joe Raedle | beautiful pictures

Spirit Airlines reported a loss for the second quarter as strong travel demand and higher fares were not enough to offset the increase in costs.

Spirit reports results less than two weeks after publication agree to sell itself arrive JetBlue Airways for $3.8 billion, ending a months-long bidding war for Spirit between JetBlue and Frontier Airlines.

Miramar, Florida-based Spirit reported a net loss of $52.4 million for the three months ended June 30. Revenue grew nearly 35% from pre-pandemic 2019 to nearly $1.37 billion la. Costs increased by more than 66% from three years ago. Its fuel bill more than doubled.

However, passengers pay more to fly, with revenue per passenger, per flight up more than 24% from 2019 to $140.61, including fees. Spirit, like other discount providers, suggestions travelers with low fares and charges for add-ons like hand luggage and seat selection.

For the current quarter, Spirit expects pre-tax margins of minus 1% to positive 1%, due to capacity constraints in Florida. The Federal Aviation Administration this spring said it would add more air traffic controllers to handle mass increase in the state.

Spirit, JetBlue and other major carriers have back to their growth plan in an effort to avoid flight disruptions, which have been made worse this year by staffing shortages.

However, Spirit said it expanded its flight operations by nearly 10% in the second quarter compared with the same period in 2019. It plans to grow its schedule to 14% in the third quarter and 25% in three months. year-end, compared with the previous three years.

Airline executives will face questions about how they will manage travel costs and demand for the rest of the year during a call with analysts expected on Wednesday at 8:30am.

Higher costs also affect other service providers, including JetBluewhich reported a second-quarter loss last week.

Low cost carrier and focus on entertainment Land of the sun on Monday, announced a $3.9 million loss despite a nearly 30% increase in revenue from 2019. And Mesa Air GroupA regional airline that flies for United and others, posted a loss of $10 million last quarter, due to challenges from higher costs related to pilot shortages.



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