Spirit Airlines Q4 profit down 62.8% despite revenue increase
Boosted by higher fare and ancillary revenue, Fort Lauderdale-based Spirit Airlines posted a Q4 net profit of $92m and saw revenue increase for the period, despite higher fuel and personnel costs. The ultra-LCC’s Q4 net profit was down 62.8% compared to its 4Q 2017 $247m net profit, which included a one-time, non-cash tax credit as a result of US tax reform legislation. Similarly, full-year net income declined 62.5% year-over-year (YOY) to $156m, compared to its $415.5m net profit for full-year 2017. But the airline sees the 4Q performance as evidence of “our momentum as we head into 2019,” president and CEO Ted Christie said. In 2018, Spirit added 21 routes to its network, five of them seasonal, and expanded its international footprint into Latin America and the Caribbean. The airline also took delivery of five Airbus A320ceos and two A320neos during the quarter, ending the year with a fleet 128 aircraft. “Throughout 2019, we will continue to see growth opportunities in large domestic leisure destinations and near-field international destinations,” Christie said. “In addition, as the opportunities present themselves to grow in large gate-constrained metros, we will do so as this is where many customers who have otherwise been priced out of the market with high fares live and where many leisure customers want to go.” Spirit’s Q4 operating revenue was up 29.5% YOY to $863m, compared to $666.2m in Q4 2017, and full-year revenue rose 25.7% to $3.3b, compared to $2.6b in 2017. Fare revenue per passenger flight segment was up 9.3% to $60.45 in the quarter, and non-ticket revenue climbed 5.2% to $56.70.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-02-07/unaligned/spirit-airlines-q4-profit-down-62-8-despite-revenue-increase
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Spirit Airlines Q4 profit down 62.8% despite revenue increase
Boosted by higher fare and ancillary revenue, Fort Lauderdale-based Spirit Airlines posted a Q4 net profit of $92m and saw revenue increase for the period, despite higher fuel and personnel costs. The ultra-LCC’s Q4 net profit was down 62.8% compared to its 4Q 2017 $247m net profit, which included a one-time, non-cash tax credit as a result of US tax reform legislation. Similarly, full-year net income declined 62.5% year-over-year (YOY) to $156m, compared to its $415.5m net profit for full-year 2017. But the airline sees the 4Q performance as evidence of “our momentum as we head into 2019,” president and CEO Ted Christie said. In 2018, Spirit added 21 routes to its network, five of them seasonal, and expanded its international footprint into Latin America and the Caribbean. The airline also took delivery of five Airbus A320ceos and two A320neos during the quarter, ending the year with a fleet 128 aircraft. “Throughout 2019, we will continue to see growth opportunities in large domestic leisure destinations and near-field international destinations,” Christie said. “In addition, as the opportunities present themselves to grow in large gate-constrained metros, we will do so as this is where many customers who have otherwise been priced out of the market with high fares live and where many leisure customers want to go.” Spirit’s Q4 operating revenue was up 29.5% YOY to $863m, compared to $666.2m in Q4 2017, and full-year revenue rose 25.7% to $3.3b, compared to $2.6b in 2017. Fare revenue per passenger flight segment was up 9.3% to $60.45 in the quarter, and non-ticket revenue climbed 5.2% to $56.70.<br/>
