10-Feb-2016 4:59 AM

Spirit Airlines reports 22.4% pre-tax margin, revenue driven by flight volume increase

Spirit Airlines reported (09-Feb-2016) its pre-tax margin for 4Q2015 increased 270 basis points to 22.4%, while adjusted pre-tax margin increased 420 basis points to 23.4% in FY2015. Spirit's total operating revenue was USD519.8 million in 4Q2015, an increase of 9.6% year-over-year, driven by an increase in flight volume although partially offset by a decrease in operating yields. Total revenue per passenger flight segment for 4Q2015 decreased 12.6% year-over-year to USD111.78, primarily driven by a 21.4% decrease in ticket revenue per PFS. The decline in ticket revenue per PFS was driven by lower fare levels as a result of increased competitive pricing pressures as well as a higher percentage of Spirit's markets being under development. Non-ticket revenue remained stable, declining only 0.8% year-over-year on a per flight segment basis to USD54.26. Spirit's CEO Bob Fornaro said, "Although increased industry capacity and aggressive competitive pricing pressured our unit revenues, our excellent cost execution and ability to adapt to a changing environment drove improved year-over-year results. As CEO, I plan to improve upon the already very strong base of fundamentals that Spirit possesses with a focus on continuing to improve operational reliability and customer service, and maintaining our financial discipline to drive value for all of Spirit's stakeholders." [more - original PR]

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