Strong travel demand and increased rates weren’t enough to offset an increase in Costs, and Spirit Airlines posted a deficit for the second quarter. Less than two weeks after announcing a $3.8 billion sale to JetBlue Airways, which put an end to a months-long bidding war between JetBlue and Frontier Airlines for Spirit, Spirit released its financial results.Spirit, situated in Miramar, Florida, reported a $52.4 million net loss for the three months that ended on June 30. From pre-pandemic 2019 to roughly $1.37 billion, revenue increased by almost 35%. In comparison to three years earlier, expenses increased by more than 66%. The Costs of petrol more than doubled.
Nonetheless, with revenue per passenger, each trip increasing by more than 24% from 2019 to $140.61, including surcharges, passengers were paying more to travel. Like other low-Costs airlines, Spirit also charges extra for services like seat selection and cabin baggage. Spirit estimates pretax profits between -1% and -1% for the current quarter due to capacity issues in Florida. In order to accommodate a spike in traffic in the state, the Federal Aviation Administration said this spring that it will hire extra air traffic controllers.
In comparison to three years ago, it intends to increase its schedule by 14% in the third quarter and by 25% in the final three months of the year. On a discussion with analysts set for Wednesday at 8:30 a.m., airline executives will answer concerns about how they will control expenses and travel demand for the remainder of the year. Other carriers have also been impacted by rising prices, notably JetBlue, which last week posted a deficit for the second quarter.