Spirit Airlines reports Q3 loss, anticipates more end-of-year travel

Spirit Airlines has reported a steep Q3 loss but is eyeing an upturn, anticipating a bump in demand for leisure air travel during the upcoming end-of-year holidays. The Miramar, Florida-based carrier lost $99m in the quarter ended in September, on revenue of $402m, the airline reported Thurdsay. Revenue was down 60% from the same period a year ago. That said, the leisure side of the industry is showing promising signs of recovery, as customers looking for cheap, easy getaways make travel plans for the all-important Thanksgiving and Christmas travel season. “History is repeating itself: leisure travellers are much more resilient and they clearly prefer products that offer the lowest price for travel,” said CE Ted Christie on the company’s quarterly analyst call. It is, he said, an “incredibly dynamic time” for the airline. The company’s average daily cash burn in Q3 was $2.3m, which it expects to reduce to $2m daily by the end of the current quarter. Christie said Spirit’s October load factor was “in the mid-70s” on reduced capacity. That shows that interest in travel by air is returning. Spirit’s network is traditionally strong to warm-weather destinations in the southern and the western USA. The airline’s home base is Fort Lauderdale-Hollywood International airport, just north of Miami, and more than 50% of Spirit’s flights touch Florida.<br/>