On October 26, 2023, Spirit Airlines Inc (SAVE, Financial) released its third quarter 2023 financial results. The company reported a net loss of $157.6 million, or a net loss of $1.44 per diluted share. Adjusted net loss for the same period was $149.8 million, or an adjusted net loss of $1.37 per diluted share. The company's load factor for the quarter was 81.4 percent.
Financial Performance
For the third quarter 2023, Spirit Airlines reported total operating revenues of $1.3 billion, a decrease of 6.3 percent compared to the third quarter 2022. Total revenue per ASM ("TRASM") was 9.14 cents, a decrease of 17.4 percent compared to third quarter 2022 on 13.5 percent more capacity. On a per passenger flight segment basis, total revenue per passenger flight segment for the third quarter 2023 decreased 13.5 percent to $116.43.
Operating Expenses
Total GAAP operating expenses for the third quarter 2023 increased 4.9 percent compared to the third quarter 2022 to $1,447.3 million. Adjusted operating expenses for the third quarter 2023 increased 7.9 percent compared to third quarter 2022 to $1,437.2 million. Increases in operating expenses were driven by increased flight volume, additional aircraft, and inflationary pressures, partially offset by lower fuel expense year over year.
Company's Outlook
CEO Ted Christie commented on the results,
Softer demand for our product and discounted fares in our markets led to a disappointing outcome for the third quarter 2023. We continue to see discounted fares for travel booked through the pre-Thanksgiving period. And, unfortunately, we have not seen the anticipated return to a normal demand and pricing environment for the peak holiday periods."Christie also mentioned that the company is evaluating its growth profile and competitive position and has taken the first steps by modifying the cadence of aircraft deliveries and slowing capacity growth in the near term.
Fleet and Future Projections
During the third quarter 2023, Spirit Airlines took delivery of three new A320neo aircraft and five new A321neo aircraft, retired four A319ceo aircraft, and ended the quarter with 202 aircraft in its fleet. For the full year 2024, Spirit estimates capacity will range between about flat to up mid-single digits compared to the full year 2023.
Explore the complete 8-K earnings release (here) from Spirit Airlines Inc for further details.
