Spirit Airlines, Inc. reported a challenging financial performance for the third quarter of 2024, with total operating revenues of $1,197.1 million, a decrease of 4.9% from $1,258.5 million in the same period of 2023. Passenger revenues also fell to $1,171.4 million from $1,233.9 million year-over-year. For the nine months ended September 30, 2024, total operating revenues were $3,743.5 million, down from $4,040.8 million in 2023, primarily due to an 8.6% decrease in average yield, despite a 1.4% increase in traffic.
Operating expenses increased to $1,493.5 million in Q3 2024, up 3.2% from $1,447.3 million in Q3 2023. This rise was driven by higher aircraft rent, salaries, and landing fees, although aircraft fuel expenses decreased by 18% due to lower fuel prices. The company reported an operating loss of $296.4 million for the quarter, compared to a loss of $188.8 million in Q3 2023. The net loss for the quarter was $308.2 million, worsening from a loss of $157.6 million in the prior year.
As of September 30, 2024, Spirit Airlines had cash and cash equivalents of $423.5 million, a significant decrease from $865.2 million at the end of 2023. Total current liabilities rose sharply to $2,540.2 million from $1,671.6 million, while total shareholders’ equity fell to $503.7 million from $1,134.3 million.
On November 18, 2024, Spirit Airlines announced its intention to file for Chapter 11 bankruptcy, citing substantial doubt about its ability to continue as a going concern. The company entered into a Restructuring Support Agreement with certain bondholders, which includes equitization of $410 million of senior secured notes and $385 million of convertible notes. The restructuring plan anticipates a $350 million equity raise upon emergence from bankruptcy.
Additionally, Spirit's common stock was suspended from trading on the NYSE and began trading on the OTC Pink Market under the symbol "SAVEQ." The company also terminated its merger agreement with JetBlue in March 2024, receiving $69 million in cash as part of the termination agreement.
The airline's operational metrics showed a 5.7% increase in passenger flight segments, totaling 11.4 million, but total revenue per passenger flight segment decreased by 10% to $104.75. The average yield also fell by 5.1% to 10.66 cents. Adjusted cost per available seat mile (CASM) ex-fuel rose by 15% to 8.20 cents, reflecting increased operating costs.
About Spirit Airlines, Inc.
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