ROSWELL41
Topic Author
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Spirit Posts 2nd Quarter 2012 Results

Tue Jul 24, 2012 1:20 pm

Spirit had an impressive second quarter! Congratulations to the hardworking employees over there!

http://ir.spirit.com/releasedetail.cfm?ReleaseID=694517
 
spiritair97
Posts: 1191
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RE: Spirit Posts 2nd Quarter 2012 Results

Tue Jul 24, 2012 3:37 pm

Quoting ROSWELL41 (Thread starter):

"Hardworking" may be a stretch. They care about their paychecks. Nothing else. Theyvseem so put out to do anything. I was on a flight with my mother once and my mother was coughing up a storm because the cabin was dusty and when asked for a cup of water, the flight attendant started arguing with her as per why she couldn't have a free glass of water! All of Spirit's profits come from their ludacris taxes and fees.
 
santi319
Posts: 323
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RE: Spirit Posts 2nd Quarter 2012 Results

Tue Jul 24, 2012 3:46 pm

Quoting spiritair97 (Reply 1):
"Hardworking" may be a stretch. They care about their paychecks. Nothing else. Theyvseem so put out to do anything. I was on a flight with my mother once and my mother was coughing up a storm because the cabin was dusty and when asked for a cup of water, the flight attendant started arguing with her as per why she couldn't have a free glass of water! All of Spirit's profits come from their ludacris taxes and fees.

Slamming NK employees just because you are so cheap you couldn't get a bottle of water to your mom is a stretch. NK employees are all hardworking and you have no idea what they have to put of with for cheap people who scream at them because they feel They are entitled to everything for a $100 round trip ticket. Do you really think the employees came up with all the charges and enjoy it?? Come on!!!
 
Pe@rson
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RE: Spirit Posts 2nd Quarter 2012 Results

Tue Jul 24, 2012 3:54 pm

"Total revenue per PFS [which includes airfare and ancillaries] of $132.53." With average one-way fare revenue of $81.06, this means its ancillary revenue was $51.47 - the most in the world. Still, I am pleased that its average fare reduces while its ancillary revenue, from typically optional extras, increases, for this is how it should be.

I note with interest that the differential between its and WN has narrowed, with WN, in its 2Q announcement, stating its average was now around $150.

Quoting spiritair97 (Reply 1):
ludacris

Novel way of spelling the word.  
"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."
 
flyboynk
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RE: Spirit Posts 2nd Quarter 2012 Results

Tue Jul 24, 2012 3:55 pm

Quoting spiritair97 (Reply 1):
Quoting ROSWELL41 (Thread starter):

"Hardworking" may be a stretch. They care about their paychecks. Nothing else. Theyvseem so put out to do anything. I was on a flight with my mother once and my mother was coughing up a storm because the cabin was dusty and when asked for a cup of water, the flight attendant started arguing with her as per why she couldn't have a free glass of water! All of Spirit's profits come from their ludacris taxes and fees.

First, the Flight Attendant should have given a glass of water without charge for someone taking medicine or in this case coughing... the F/A should have used common sense but then again they do see many times how many people ask for the water for a pill then don't take a pill at all. Please don't come here trying to say NK's profit's are based on things like this, you could have spend a few $$$ on a bottle of water in the terminal (such as I do if I'm thirsty or I know I'm going to be charged ahead of time) or simply just buy a bottle of water.

If NK employee's could change many of the things going on today they would in the perfect world... but understand NK generates huge profits based on hardworking employees and it's business plan.
Flyboynk
 
nkops
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RE: Spirit Posts 2nd Quarter 2012 Results

Tue Jul 24, 2012 4:13 pm

Quoting spiritair97 (Reply 1):
"Hardworking" may be a stretch. They care about their paychecks. Nothing else

Wow... didn't realize you knew EVERY NK employee... I work next to them every day and watch some of the stuff they put up with... they are absolutely hardworking for the most part.... and the company's success has a lot to do with them.
:evil:
 
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enilria
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RE: Spirit Posts 2nd Quarter 2012 Results

Tue Jul 24, 2012 5:03 pm

For their level of growth, those are tremendous results. I think you are going to find the legacies start to pay more attention to them. Those are some out of the park numbers.
 
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jfklganyc
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RE: Spirit Posts 2nd Quarter 2012 Results

Tue Jul 24, 2012 5:10 pm

Sometimes statements on here make me laugh.

"The only care about their paychecks."

And what are they supposed to care about? Are they priests or nuns that have become a flight attendant as a "calling?"

They are people with family and friends and lives just like you that are doing a job to get paid...not for the heck of it.

And in the case of NK, they are doing it for an ULCC that gives each customer the absolute minimum unless they pay for more.

So yes, they care about their paychecks and to keep them coming, they will do their jobs as per the company...just like you do yours!
 
Bobloblaw
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RE: Spirit Posts 2nd Quarter 2012 Results

Tue Jul 24, 2012 5:11 pm

Quoting spiritair97 (Reply 1):
"Hardworking" may be a stretch. They care about their paychecks. Nothing else

They work hard on new ideas to nickle and dime you.


Unfortunately I think we'll see other carriers follow G4 and NK's product over the next few years.
 
LAXintl
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RE: Spirit Posts 2nd Quarter 2012 Results

Tue Jul 24, 2012 5:19 pm

Kudos to the employees of Spirit. They managed another impressive quarter.

I'll have comments from the earnings call later.
From the desert to the sea, to all of Southern California
 
stlgph
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RE: Spirit Posts 2nd Quarter 2012 Results

Tue Jul 24, 2012 5:51 pm

Quoting bobloblaw (Reply 8):
Unfortunately I think we'll see other carriers follow G4 and NK's product over the next few years.

As they should, I, for one, appreciate the a la carte pricing.
if assumptions could fly, airliners.net would be the world's busiest airport
 
LoneStarMike
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RE: Spirit Posts 2nd Quarter 2012 Results

Tue Jul 24, 2012 5:55 pm

Quoting Pe@rson (Reply 3):
With average one-way fare revenue of $81.06, this means its ancillary revenue was $51.47 - the most in the world
Quoting bobloblaw (Reply 8):
They work hard on new ideas to nickle and dime you.

Well of course they do, because let's not forget that in the US, the airlines have to pay a federal excise tax on their fares but not on their fees

LoneStarMike
 
Bobloblaw
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RE: Spirit Posts 2nd Quarter 2012 Results

Tue Jul 24, 2012 5:58 pm

Quoting LoneStarMike (Reply 11):
Well of course they do, because let's not forget that in the US, the airlines have to pay a federal excise tax on their fares but not on their fees

excellent point.
 
MaverickM11
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RE: Spirit Posts 2nd Quarter 2012 Results

Tue Jul 24, 2012 6:53 pm

Quoting enilria (Reply 6):
For their level of growth, those are tremendous results. I think you are going to find the legacies start to pay more attention to them. Those are some out of the park numbers.

  Very impressive

Quoting LoneStarMike (Reply 11):
Well of course they do, because let's not forget that in the US, the airlines have to pay a federal excise tax on their fares but not on their fees

How long until Congress taxes 'fees'? Those are too tempting and airlines are too disliked for taxing of fees not to happen eventually, sooner rather than later.
E pur si muove -Galileo
 
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enilria
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RE: Spirit Posts 2nd Quarter 2012 Results

Tue Jul 24, 2012 7:26 pm

Quoting MaverickM11 (Reply 13):
Quoting LoneStarMike (Reply 11):
Well of course they do, because let's not forget that in the US, the airlines have to pay a federal excise tax on their fares but not on their fees

How long until Congress taxes 'fees'? Those are too tempting and airlines are too disliked for taxing of fees not to happen eventually, sooner rather than later.

I agree. It's an evasion of the intention of the rules. Frankly, I think fuel surcharges are also a joke. Last Winter I priced a trip to Europe and the fare was $228 roundtrip + $499 in fuel and other fees. What a joke...and that was on a legacy carrier.
 
spiritair97
Posts: 1191
Joined: Fri Jan 07, 2011 9:28 pm

RE: Spirit Posts 2nd Quarter 2012 Results

Tue Jul 24, 2012 7:40 pm

Quoting santi319 (Reply 2):
Quoting spiritair97 (Reply 1):
"Hardworking" may be a stretch. They care about their paychecks. Nothing else. Theyvseem so put out to do anything. I was on a flight with my mother once and my mother was coughing up a storm because the cabin was dusty and when asked for a cup of water, the flight attendant started arguing with her as per why she couldn't have a free glass of water! All of Spirit's profits come from their ludacris taxes and fees.

Slamming NK employees just because you are so cheap you couldn't get a bottle of water to your mom is a stretch. NK employees are all hardworking and you have no idea what they have to put of with for cheap people who scream at them because they feel They are entitled to everything for a $100 round trip ticket. Do you really think the employees came up with all the charges and enjoy it?? Come on!!!
Quoting santi319 (Reply 2):

Who are you to call me too cheap? You don't know me and it was my mom arguing over the water, not me. Second, yes there are some that work hard, but I have yet to experience any of them. Plus where do you come off sayong that I thinl I'm entitled to everything for cheap? I understand that there is not much you get for 100 dollars but when an older woman is coughing and out of breath you should not argue with her when she asks for water. We would have had NO problem payig for it but when they said no and rolled their eyes we got upset. Maybe Spirits ground personell are hardworking but from my experiences on their flights, their flight attendants don't have the best attitudes.
 
LAXintl
Posts: 20183
Joined: Wed May 24, 2000 12:12 pm

RE: Spirit Posts 2nd Quarter 2012 Results

Tue Jul 24, 2012 8:14 pm

Earnings call notes:



FINANCIAL

o Q2 net profit - $35.3mil – up 35% yoy
o Revenues $346mil up 25.5%
o 16.3% operating margin. EBITAR margin 27.6%
o 30.3% return on invested capital last 12-mos
o CASM ex-fuel 6.05 cents. Up 5-6% yoy in 2012. Expect CASM to drop back down by Q4 again.
o Cost pressure from new station start up cost, and cost for cabin seat mods.
o Experienced some higher maintenance charges including hail damage in Q2
o Cash end of quarter $415mil unrestricted cash
o Fuel hedging into Q3 – approx 20% hedged, plus hurricane protection for winter.


TRAFFIC / NETWORK

o Serves 51 airports now - 10 new routes in Q2
o Q2 capacity up 16.5% Load factor nearly flat at 84.8%
o 22% annual capacity growth for 2012.
o Yield up 9.1% to 11.44cents.
o Low base fare, key part of business model – Average was $81.06. Want to drop this further.
o $51.47 average ancillary revenue, up 18.6%
o Stage length dropped slight to 902 miles
o Irregular ops in Q2 were unusual – many weather related. Had 2 aircraft out of service for a while
o While a point to point airline, near 10% of pax connection flow across network.
o New markets performing well – meeting required margins – including “Lion’s den” DFW
o Would like to be in the Top-25 US metro’s
o Lots of new markets, to “liberate”
o Besides new cities, lots of connect the dot opportunities.
o Now have some 400 identified potential city-pairs. Have yet to put a big dent in the market.
o Plan to be the lowest price option in any city they serve. Average 25% less then prevailing rates. People will always want lower fares
o 6-8 flights needed for benefits of scale in new stations. Denver launch is a good example


FLEET

o 2 A320s arrived in Q2, total fleet 42.
o 2 more A320s due in 2012.
o Larger fleet gauge (A320 vs A319) will help hold down CASM in long run.
o High fleet utilization at 12.9hrs daily.
o Current order book pretty low risk – could see 200 planes one day.
o Financing for all 2013 deliveries nearly in place


OTHER

o Confident can grow 15-20% per year without diluting yields
o Like McDonalds and Walmart believe Spirit’s “value” model works very well during both good and bad economic times
o Demand trend looks good. No sign of economic weakness
o Cross selling such as hotels off to good start especially in markets like LAS.
o $9 Fare Club and Master Card tie-in growing nicely in new markets. Getting nice scale in place like DFW

=
From the desert to the sea, to all of Southern California
 
Rdh3e
Posts: 2731
Joined: Wed Mar 30, 2011 2:09 pm

RE: Spirit Posts 2nd Quarter 2012 Results

Tue Jul 24, 2012 8:25 pm

Quoting spiritair97 (Reply 1):
"Hardworking" may be a stretch.
Quoting spiritair97 (Reply 15):
Maybe Spirits ground personell are hardworking but from my experiences on their flights, their flight attendants don't have the best attitudes.

So your Screen Name is about Spirit, and yet you're just here to bash them? Also, nice retreat on your "ludacris" comments.

Quoting spiritair97 (Reply 1):
All of Spirit's profits come from their ludacris taxes and fees.

Look up the definition of TAXES. You have no idea what you are talking about.
 
ScottB
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Joined: Fri Jul 28, 2000 1:25 am

RE: Spirit Posts 2nd Quarter 2012 Results

Tue Jul 24, 2012 9:06 pm

Quoting LoneStarMike (Reply 11):
let's not forget that in the US, the airlines have to pay a federal excise tax on their fares but not on their fees

  . With $51.47 of the average revenue/passenger being in "fees," NK avoids $3.59/passenger in federal excise taxes. That represents $9.4 million in taxes avoided -- or about 15% of their operating profit.

Quoting bobloblaw (Reply 8):
They work hard on new ideas to nickle and dime you.

Or new heights in tasteless marketing.
 
EricR
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Joined: Mon Jul 26, 2010 4:15 pm

RE: Spirit Posts 2nd Quarter 2012 Results

Tue Jul 24, 2012 9:13 pm

Quoting ScottB (Reply 18):
Quoting LoneStarMike (Reply 11):
let's not forget that in the US, the airlines have to pay a federal excise tax on their fares but not on their fees

. With $51.47 of the average revenue/passenger being in "fees," NK avoids $3.59/passenger in federal excise taxes. That represents $9.4 million in taxes avoided -- or about 15% of their operating profit.


With a loophole like that, airlines should charge $1 for their airfare and then charge a $200 (or whatever amount) "seat fee". Seems like a rule that can be subject to a lot of abuse.
 
flyboynk
Posts: 49
Joined: Fri Jun 06, 2008 5:57 pm

RE: Spirit Posts 2nd Quarter 2012 Results

Tue Jul 24, 2012 9:26 pm

Quoting spiritair97 (Reply 15):

Who are you to call me too cheap? You don't know me and it was my mom arguing over the water, not me. Second, yes there are some that work hard, but I have yet to experience any of them. Plus where do you come off sayong that I thinl I'm entitled to everything for cheap? I understand that there is not much you get for 100 dollars but when an older woman is coughing and out of breath you should not argue with her when she asks for water. We would have had NO problem payig for it but when they said no and rolled their eyes we got upset. Maybe Spirits ground personell are hardworking but from my experiences on their flights, their flight attendants don't have the best attitudes.

Actually, NK's Flight Attendants are probably some of the best you will experience in the US domestically overall...
Flyboynk
 
santi319
Posts: 323
Joined: Thu Dec 29, 2005 3:24 pm

RE: Spirit Posts 2nd Quarter 2012 Results

Tue Jul 24, 2012 9:35 pm

Quoting flyboynk (Reply 20):
Actually, NK's Flight Attendants are probably some of the best you will experience in the US domestically overall...

I agree they usually understand all of the passengers' stress over the fees etc that their customers go through when traveling. Now if you come to an aircraft demanding free stuff because you feel like dust from the airplane (??) is affecting your lungs, don't expect any special treatment....
 
AWACSooner
Posts: 1760
Joined: Tue Jan 22, 2008 12:35 am

RE: Spirit Posts 2nd Quarter 2012 Results

Tue Jul 24, 2012 9:37 pm

Quoting flyboynk (Reply 20):
Actually, NK's Flight Attendants are probably some of the best you will experience in the US domestically overall...

I'd put AA above their flight attendants any day of the week...and twice on Sunday. And we all know how well-loved AA's FA's are on these boards.
 
delta2ual
Posts: 558
Joined: Mon Dec 03, 2007 11:18 pm

RE: Spirit Posts 2nd Quarter 2012 Results

Tue Jul 24, 2012 11:13 pm

Quoting enilria (Reply 14):
I agree. It's an evasion of the intention of the rules. Frankly, I think fuel surcharges are also a joke. Last Winter I priced a trip to Europe and the fare was $228 roundtrip + $499 in fuel and other fees. What a joke...and that was on a legacy carrier.

LOL. I think the joke is that a legacy charged $228 roundtrip to Europe! Seriously? I was looking at ORD-MIA and the cheapest I could find was $400+ roundtrip on WN to FLL! I forgot to look at Spirit. maybe I will try them.
From the world's largest airline-to the world's largest airline. Delta2ual
 
PlanesNTrains
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RE: Spirit Posts 2nd Quarter 2012 Results

Wed Jul 25, 2012 12:44 am

Quoting spiritair97 (Reply 15):
Who are you to call me too cheap? You don't know me and it was my mom arguing over the water, not me. Second, yes there are some that work hard, but I have yet to experience any of them. Plus where do you come off sayong that I thinl I'm entitled to everything for cheap? I understand that there is not much you get for 100 dollars but when an older woman is coughing and out of breath you should not argue with her when she asks for water. We would have had NO problem payig for it but when they said no and rolled their eyes we got upset. Maybe Spirits ground personell are hardworking but from my experiences on their flights, their flight attendants don't have the best attitudes.

Interesting that you are above question but the employees of Spirit aren't. Sounds like you fly them more than you should.

I don't think people should be treated poorly (employees or customers) but you can't argue with success. They are providing a service that some people want. You don't like it? Fly someone else. Personally, I'd rather see Spirit be successful than watch another airline report loss after loss then go CH11 on their employees and creditors.

-Dave
-Dave
 
brains
Posts: 242
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RE: Spirit Posts 2nd Quarter 2012 Results

Wed Jul 25, 2012 2:23 pm

Quoting spiritair97 (Reply 1):
"Hardworking" may be a stretch. They care about their paychecks. Nothing else.

Maybe we can put a bit more stock in that comment when you're old enough to join the working world. Talk about insulting to the people at NK who work hard and care about the people they are serving.
Brains
 
KarlB737
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RE: Spirit Posts 2nd Quarter 2012 Results

Wed Jul 25, 2012 2:44 pm

Courtesy: The Street

How Spirit Airlines Plans To Take Over America

"The carrier today has 42 A320 family aircraft and plans to take 68 more by the end of 2015. Beyond the 68, it has 75 more on order. However, it has 28 aircraft on lease and could return some, meaning it could take 40 between 2016 and 2021. In other words, Spirit should have about 160 aircraft in 2021, four times its current fleet size."

http://business-news.thestreet.com/r...lans-to-take-over-america/11637152
 
deltal1011man
Posts: 4541
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RE: Spirit Posts 2nd Quarter 2012 Results

Wed Jul 25, 2012 3:16 pm

Quoting santi319 (Reply 2):

wow.

Quoting flyboynk (Reply 4):

If NK employee's could change many of the things going on today they would in the perfect world... but understand NK generates huge profits based on hardworking employees and it's business plan.

So airline employee's aren't evil mean people hell bent on making some FFs life a living hell? i don't believe you.

Quoting nkops (Reply 5):

Wow... didn't realize you knew EVERY NK employee... I work next to them every day and watch some of the stuff they put up with... they are absolutely hardworking for the most part.... and the company's success has a lot to do with them.

man that is cool. I wish i knew everyone at NK.

Quoting jfklganyc (Reply 7):
And what are they supposed to care about? Are they priests or nuns that have become a flight attendant as a "calling?"

lol. Come on now, they should do anything, even if it gets them fired, for the PAX. I mean, jeesh airline employees are just like monkeys.   (sarcasm)

Quoting bobloblaw (Reply 8):
They work hard on new ideas to nickle and dime you.

So? Why shouldn't they?

Quoting EricR (Reply 19):

With a loophole like that, airlines should charge $1 for their airfare and then charge a $200 (or whatever amount) "seat fee". Seems like a rule that can be subject to a lot of abuse.

When you find a way to abuse something, you must not push it to the point of change. If airlines did this the government would change the rules. Thus they will push it just to the breaking point but not over.


I get tired of people complaining about carriers like NK. If you don't like the pricing, if you don't like the fees, fly someone else. Its as simple as that. Anyways, good numbers for them today. congrants NK employees.
New airliners.net web site sucks.