Spirit Q1 net profit down 48%, but touts operational improvement
Spirit Airlines reported a Q1 net profit of $31.9m, down 48.4% from net income of $61.9m in the prior-year period, but the airline believes it is on the upswing. The aggressive price matching of major US airlines has led the airline to focus more on improving operating performance and on managing its fares more thoughtfully, CE Bob Fornaro told analysts. “We still have very low fares, but it’s no longer load factor at all cost,” he said. “We are getting better at managing our capacity … [With] the pricing environment today, which is a lot of price matching, you have to be more nimble with the way you manage your schedules, and I think you’re going to see a lot more of that going forward.” Fornaro noted that Spirit’s on-time performance improved 10.2 percentage points YOY to 75.5% in Q1. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2017-05-01/unaligned/spirit-q1-net-profit-down-48-but-touts-operational-improvement
https://portal.staralliance.com/cms/logo.png
Spirit Q1 net profit down 48%, but touts operational improvement
Spirit Airlines reported a Q1 net profit of $31.9m, down 48.4% from net income of $61.9m in the prior-year period, but the airline believes it is on the upswing. The aggressive price matching of major US airlines has led the airline to focus more on improving operating performance and on managing its fares more thoughtfully, CE Bob Fornaro told analysts. “We still have very low fares, but it’s no longer load factor at all cost,” he said. “We are getting better at managing our capacity … [With] the pricing environment today, which is a lot of price matching, you have to be more nimble with the way you manage your schedules, and I think you’re going to see a lot more of that going forward.” Fornaro noted that Spirit’s on-time performance improved 10.2 percentage points YOY to 75.5% in Q1. <br/>
