Spirit warns of tough Q3

Spirit Airlines says its flexible network and lower fuel and flight operations costs helped it weather the coronavirus storm in the second quarter, and expects the next months to continue to be volatile as the pandemic drags on. The Miramar, Florida-based ultra-low-cost carrier reported a net loss of $144m on 22 July, and says its operating revenue for the quarter fell 86.3% year-on-year, to $138.5m. The airline’s capacity between April and June was 83% lower than the same period a year ago. Load factors on those flights increased from just under 18% in April, near the beginning of shelter-in-place orders, to 79% in June, at the end of the quarter, when leisure customers were itching to leave home for their summer vacations. Costs fell 61%, driven by a lower fuel price and reductions in other operations-related expenses due to the small volume of flights it operated at the height of the crisis. The airline expects further instability in the coming months, and is predicting capacity will decline again in Q3. <br/>