Loading

Spirit posts 15% operating margin in 55% profit swing on fuel costs

Analysis

Spirit Airlines experienced a 55.2% decline in profitability in the third quarter when it posted net income of USD27.7 million, despite a 41.8% increase in revenues to USD288.7 million. This revenue increase overwhelmed the 33.7% increase in operating expenses which came in at USD244.1 million. The airline beat consensus estimates for the quarter which expected a US274.9 million profit.

CEO Ben Baldanza pointed out that the company grew capacity by 10.4% in the quarter "while maintaining industry-leading margins on increased operating and net income by over 100%". Traffic rose 15.6%, outpacing capacity increases. It was able to recapture most of the losses prompted by Hurricane Irene cancellations.

Read More

This CAPA Analysis Report is 2,190 words.

You must log in to read the rest of this article.

Got an account? Log In

Create a CAPA Account

Get a taste of our expert analysis and research publications by signing up to CAPA Content Lite for free, or unlock full access with CAPA Membership.

InclusionsContent Lite UserCAPA Member
News
Non-Premium Analysis
Premium Analysis
Data Centre
Selected Research Publications

Want More Analysis Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More