ROSWELL41
Topic Author
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Spirit Airlines Reports 3Q 2012 Financial Results

Wed Oct 31, 2012 12:22 pm

http://ir.spirit.com/releasedetail.cfm?ReleaseID=717279

Spirit has reported a net profit of $25.2 million dollars for the 3rd quarter 2012. Additional highlights state that company has an 11.8% operating margin. Spirit ends the quarter with $399.1 million dollars in unrestricted cash and no debt on its balance sheet.

Of additional interest is a note that Spirit has signed a Letter of Intent with ILFC for 3 additional used A319s and five A320 NEOs. The first used A319 will show up in December 2012. I guess this may mean growth faster than planned.
 
DFWHeavy
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Wed Oct 31, 2012 12:24 pm

No Debt.....I love it. Way to go Spirit.
Christopher W Slovacek
 
william
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Wed Oct 31, 2012 1:57 pm

No debt and having a strong cash positiion used to be how the majors ran their operations.

Congrats to Spirit. Do they have profit sharing with their employees?
 
Jetfixr757
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Wed Oct 31, 2012 2:06 pm

Before you start cheering and popping corks run the registration of random aircraft, I just ran 2 and they belong to leasing companies, that means DEBT, the jets and ground equipment is all on a NOTE, incase you don't know what that means its just like having a huge car loan...Sorry to pop your cherry!
Jet
 
MaverickM11
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Wed Oct 31, 2012 2:08 pm

Compared to AS it's a bit underwhelming; even G4 had a stronger quarter. It's not a bad quarter for NK, I was just expecting better.
E pur si muove -Galileo
 
Rdh3e
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Wed Oct 31, 2012 2:09 pm

Quoting jetfixr757 (Reply 3):
Before you start cheering and popping corks run the registration of random aircraft, I just ran 2 and they belong to leasing companies, that means DEBT, the jets and ground equipment is all on a NOTE, incase you don't know what that means its just like having a huge car loan...Sorry to pop your cherry!
Jet

I believe a lease is not classified as a LOAN because you are not purchasing the asset. They do have future cash liabilities, but it is non-interest bearing whereas a loan would incur interest.
 
ROSWELL41
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Wed Oct 31, 2012 2:12 pm

Quoting jetfixr757 (Reply 3):
Before you start cheering and popping corks run the registration of random aircraft, I just ran 2 and they belong to leasing companies, that means DEBT, the jets and ground equipment is all on a NOTE, incase you don't know what that means its just like having a huge car loan...Sorry to pop your cherry!
Jet

No, its not debt according to the accounting laws in the USA.
 
LAXintl
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Joined: Wed May 24, 2000 12:12 pm

RE: Spirit Airlines Reports 3Q 2012 Financial Results

Wed Oct 31, 2012 2:32 pm

Spirit utilizes operating leases, not capital leases, so no its not considered debt.

Anyhow kudos to Spirit for yet another strong quarter. Love or hate them, their business model seems to work extremely well.

I'll have some notes after the earnings call.
From the desert to the sea, to all of Southern California
 
Jetfixr757
Posts: 136
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Wed Oct 31, 2012 2:33 pm

Well not saying hooray for them, if you make a payment on a rivet its debt, you DON'T own it, however what the laws say at the end of the day you don't own the asset just stop paying on it and watch It vanish, I have repoed big and small before so again, 3 cheers for them it's a tough industry!
Jet
 
dtw9
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Wed Oct 31, 2012 2:41 pm

Quoting LAXintl (Reply 7):
Spirit utilizes operating leases, not capital leases, so no its not considered debt.

Because Spirit uses operating leases it does not show up on the balance sheet as debt. However it is still "off balance sheet debt". By doing this it makes your debt to equity ratio look better to investors and also helps your borrowing power.
 
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coronado
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Wed Oct 31, 2012 3:06 pm

Lease payments whether operating or capital leases absolutely do include a significant internal calculation for interest within the monthly payment. The fact that it is not broken out does not mean it was not included in the payment. The contrast between lease payments when prevailing interest rates are low (as is generally in the current time frame) compared to when interest rate scenarios are high is quite dramatic.

If you add the your lease payments out over the length of the lease, you will be surprised how much more you paid for ''renting'' that asset than the asset is worth at the beginning of the lease.
The Original Coronado: First CV jet flights RG CV 990 July 1965; DL CV 880 July 1965; Spantax CV990 Feb 1973
 
hatbutton
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Wed Oct 31, 2012 3:19 pm

Quoting jetfixr757 (Reply 8):
Well not saying hooray for them, if you make a payment on a rivet its debt, you DON'T own it, however what the laws say at the end of the day you don't own the asset just stop paying on it and watch It vanish, I have repoed big and small before so again, 3 cheers for them it's a tough industry!

Well an operating lease doesn't come with interest payments attached to it. So the lease is part of the normal operating expenses. And their credit rating isn't as negatively affected by the lease like long term debt would be. So as a result their interest expense is almost nothing which is a huge expense for most carriers that goes straight to the bottom line.
 
usflyguy
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Wed Oct 31, 2012 3:27 pm

With such good results, maybe they'll sit down with their flight attendant union and negotiate in good faith. Working under a contract signed 10 years ago that became amendable in 2007 is somewhat ridiculous.
My post is my ideas and my opinions only, I do not represent the ideas or opinions of anyone else or company.
 
santi319
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Wed Oct 31, 2012 3:40 pm

Quoting usflyguy (Reply 12):
With such good results, maybe they'll sit down with their flight attendant union and negotiate in good faith. Working under a contract signed 10 years ago that became amendable in 2007 is somewhat ridiculous.

And you know what happened last time when they didn't want to negotiate...
 
LAXintl
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Wed Oct 31, 2012 4:02 pm

Some notes from the earnings call.


FINANCIAL

o Net income $25.2mil
o EBITAR margin 23.9%
o Revenue $342.3mil up 18.6%
o Cost $292.6mil up 19.9% primarily driven by fuel, unusually high network disruptions during summer, and aircraft overhaul bubble.
o ex fuel CASM 6.02 cents. Expect growth will help keep down/lower unit cost into 2013 and beyond. Widening cost advantage to much of industry.
o Average revenue per pax $121.65
o $49.80 of average is non ticket revenue - up 11.5%
o Goal continues to be to continue dropping ticket revenue and increase non-ticket
o Fuel remains unpredictable - about 20% fuel hedged in Q4.
o Very strong cash position - $339.1mil unrestricted at end of Qtr.


TRAFFIC / NETWORK

o Passenger segments up 23.2% year over year
o Load factor 85.9%
o Move from DCA to BWI will offer more schedule flexibility while still keeping foot in DC market.
o Excited about Houston
o Now serve 80% of population of largest 25 metro areas
o Expect to see more "connecting the dots" in the next year as NK becomes established in these metros
o Seeing nice network stimulative effect as they grown nationwide.
o Domestic marketplace offers lots of opportunities especially now due mergers and carrier consolidation.
o Vegas - Mesa example NK will eliminate routes that don't make money. Wont sit around and nurse markets.
o See stable bookings demand for the holidays. Not much visibility into 2013.
o DFW crew base opens December


FLEET

o 42 planes on property at end of quarter.
o 2 A320s due in Q4, 9 more in 2013. 8% unit cost cheaper than A319.
o "Opportunity" to pick up 3 A319s from ILFC - 1 due in December, other 2 in January on short 40-month leases.
o Will add 5 A320NEOs also from ILFC to previously announced NEO orders.
o Seat retrofit program continues in Q4
o Expect higher fleet downtime in 2013 as overahaul checks peak.


OTHER

o "very satisfied" with $9 Fare Club - loyal, smart, value oriented customers
o Looking towards 2013, expect 18-22% growth
o Target 24-26% Ebitar margin for 2013.
o Expect to continue offer customers ever more optional fees. Simple principle - they pay for only what they utilize.
o $100 bag fee is incentive for customers to pay for fee before they get to the gate, to speed boarding process. This is an operation issue, not revenue source. Expect less then 1% of customers to pay. Want to ensure quick boarding, less gate hassles leading to shorter turn times.

=
From the desert to the sea, to all of Southern California
 
flashmeister
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Wed Oct 31, 2012 4:56 pm

Quoting LAXintl (Reply 14):
Expect to continue offer customers ever more optional fees. Simple principle - they pay for only what they utilize.

What optional fee could they possibly offer that they don't now?
 
Rdh3e
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Wed Oct 31, 2012 5:11 pm

Quoting flashmeister (Reply 15):
What optional fee could they possibly offer that they don't now?

Bathroom?
 
rgreenftm
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Wed Oct 31, 2012 5:42 pm

Quoting RDH3E (Reply 16):
What optional fee could they possibly offer that they don't now?

Reading light fee?  
 
INFINITI329
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Joined: Mon Jul 02, 2012 12:53 am

RE: Spirit Airlines Reports 3Q 2012 Financial Results

Wed Oct 31, 2012 5:54 pm

Quoting rgreenftm (Reply 17):
Quoting RDH3E (Reply 16):
What optional fee could they possibly offer that they don't now?

A window shade fee?  
 
LAXintl
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Wed Oct 31, 2012 7:48 pm

As Ryanair has stated prior, Spirit similarly want to continue reducing the ticket price to a point where its a rather trivial cost, and let the consumers in ala-catre fashion add in whatever travel options they wish to utilize.

In the last year the average ticket price at Spirit has dropped some $10.
From the desert to the sea, to all of Southern California
 
AWACSooner
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Wed Oct 31, 2012 8:10 pm

Wonder how much of this profit was due to ancillary fees?
 
LAXintl
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Wed Oct 31, 2012 8:19 pm

About 40% of earnings are non-ticket revenue.

As I stated earlier, their goal is to reduce their ticket prices so they earn bulk of their money from non ticket price sources.
From the desert to the sea, to all of Southern California
 
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yellowtail
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Wed Oct 31, 2012 9:09 pm

Quoting LAXintl (Reply 14):
o Excited about Houston

i.e.....IAH-Mexico/LatAmerica here we come!
When in doubt, hold on to your altitude. No-one has ever collided with the sky.
 
flyboynk
Posts: 49
Joined: Fri Jun 06, 2008 5:57 pm

RE: Spirit Airlines Reports 3Q 2012 Financial Results

Wed Oct 31, 2012 10:07 pm

Quoting yellowtail (Reply 22):
Quoting LAXintl (Reply 14):
o Excited about Houston

i.e.....IAH-Mexico/LatAmerica here we come!

You see more growth out of DFW first before IAH.. such as a few more places in Mexico, Central America and Caribbean possible South America.... maybe new destinations such as Belize :P
Flyboynk
 
rojo
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Wed Oct 31, 2012 10:10 pm

Quoting AWACSooner (Reply 20):
Wonder how much of this profit was due to ancillary fees?

You can do the Math yourserlf:

o Average revenue per pax $121.65
o $49.80 of average is non ticket revenue - up 11.5%

49.80 / 121.65 = 41%
 
flyboynk
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Wed Oct 31, 2012 10:20 pm

What's interesting about the webcast today about earnings etc.. was the leasing of 3 additional A319 aircraft (which the 3 are from the 7 previously returned to leasing companies a few yrs ago) 1 A319 coming in Dec 2012 and two in Jan 2013. They are on short 40 month leases until the 5 A320Neos arrive on lease.

This will increase fleet to 45 (currently 42 as of Oct 31st) by end of 2012 by adding 2 A320's and 1 A319 and adding 9 aircraft in 2013 ( 7 A320's and 2 A319's) increasing the fleet to 54 by end of 2013. Growing from 42 to 54 in a 12 month period a 29% increase...
Flyboynk
 
Braniff747SP
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Thu Nov 01, 2012 12:51 am

No debt? For an airline, it is impressive. Glad to see some are still making money.
The 747 will always be the TRUE queen of the skies!
 
RCS763AV
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Thu Nov 01, 2012 1:22 am

Strong numbers by NK! It's good to see the only ULCC in the americas doing great.

Now, has anyone heard anything about the proposed and heavily mediatized (at least in Colombia) intra-andean flights? (BOG-LIM-BOG and BOG-UIO-BOG?) Slots are now available in BOG with the opening of the new terminal.
 
airbuske
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Thu Nov 01, 2012 1:39 am

forthcoming deliveries between now and January:
new A320s : N616NK(MSN5370), N617NK(MSN5387), N618NK(MSN5458)
used A319s from ILFC (all ex-Windjet) : N515NK(MSN2698), N519NK(MSN2723), N521NK(MSN2797).

exciting times lie ahead!
 
AA767LOVER
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Thu Nov 01, 2012 1:51 am

Folks, sorry to burst your bubbles, yes they have strong showing, but more than they deserve. They also got bad publicity from irrationally delaying passengers for hours on end without good explanation. I want to see Spirit succeed and day even surpass WN.
But cust svc has to change, bring back in big leather seats as non-tkt revenue, as well as the other existing a la carte options.
The new planes coming in are going to be awesome.
I think DFW may have more of a problem to expand to Latin America given AA's stronghold on that market. Houston needs just as much competition against United too.

One day I hope they have the range to go as far south as EZE (or AEP since AEP also has customs facilities), CGH or MVD, and also penetrate the northern Brazil market first like MAO before assertively going to CGH (not sure if it's all domestic - went to CGH for a visit once just for the thrill - or has federal inspection facilities).
J.I. Tsui, American Advantage Member, United Mileage Plus (Premier)
 
OB1504
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Thu Nov 01, 2012 3:35 am

Quoting ROSWELL41 (Thread starter):
Of additional interest is a note that Spirit has signed a Letter of Intent with ILFC for 3 additional used A319s and five A320 NEOs. The first used A319 will show up in December 2012. I guess this may mean growth faster than planned.

I'm surprised that Spirit will be adding A319s to the fleet, considering that several have already left. Kudos to Spirit for growing so successfully.

Quoting airbuske (Reply 28):
used A319s from ILFC (all ex-Windjet) : N515NK(MSN2698), N519NK(MSN2723), N521NK(MSN2797).

Looks like the Spirit of San Juan, Spirit of Fort Myers, and Spirit of New York/LaGuardia are coming back to the fleet! I just wish they'd keep the names when repainting to the new color scheme.

Quoting AA767LOVER (Reply 29):
They also got bad publicity from irrationally delaying passengers for hours on end without good explanation.

Every airline gets bad publicity for "irrationally" delaying passengers (can you provide a source to back up your claim?), but passengers have very poor memories, and will forget most previous occurrences if the fare is low enough.

Quoting AA767LOVER (Reply 29):
But cust svc has to change, bring back in big leather seats as non-tkt revenue

BIG FRONT SEAT is still available on all Spirit aircraft, and as a matter of fact, every seat on Spirit has leather upholstery, so I don't know what you're referring to here.
 
airbuske
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Thu Nov 01, 2012 4:02 am

Quoting OB1504 (Reply 30):
I'm surprised that Spirit will be adding A319s to the fleet, considering that several have already left.

Spirit begins retrofitting it's in service aircraft with FTIS beginning February next year which means a lot of airplanes are going to be down for extended periods of time. My understanding is that these A319s are coming in on short term leases to fill in the gaps until the retrofit is completed on all effective aircraft (circa 2017).
 
MaverickM11
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Thu Nov 01, 2012 2:17 pm

Quoting rojo (Reply 24):

Quoting AWACSooner (Reply 20):
Wonder how much of this profit was due to ancillary fees?

You can do the Math yourserlf:

o Average revenue per pax $121.65
o $49.80 of average is non ticket revenue - up 11.5%

49.80 / 121.65 = 41%

They're probably losing money on the ticketed fare, and making it all on the ancillary revenue. The profit is likely almost entirely from the ancillary revenue, not 40%, similar to G4.

Quoting LAXintl (Reply 14):
o Net income $25.2mil

What were the analyst expectations prior?

Quoting LAXintl (Reply 14):
o Move from DCA to BWI will offer more schedule flexibility while still keeping foot in DC market.
o Excited about Houston
o Now serve 80% of population of largest 25 metro areas
o Expect to see more "connecting the dots" in the next year as NK becomes established in these metros
o Seeing nice network stimulative effect as they grown nationwide.
o Domestic marketplace offers lots of opportunities especially now due mergers and carrier consolidation.
o Vegas - Mesa example NK will eliminate routes that don't make money. Wont sit around and nurse markets.
o See stable bookings demand for the holidays. Not much visibility into 2013.
o DFW crew base opens December

Did they even mention FLL?
E pur si muove -Galileo
 
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yellowtail
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Thu Nov 01, 2012 4:42 pm

Quoting flyboynk (Reply 23):
maybe new destinations such as Belize :P

Now that is doubtful. Simply not enough O&D between DFW and BZE. Would need to rely heavily on Connecting.

Quoting AA767LOVER (Reply 29):
Houston needs just as much competition against United too.

Except that the average fare at IAH is very high. Lots of room to grow profitably.
When in doubt, hold on to your altitude. No-one has ever collided with the sky.
 
LAXintl
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Thu Nov 01, 2012 5:07 pm

Quoting MaverickM11 (Reply 32):
They're probably losing money on the ticketed fare, and making it all on the ancillary revenue. The profit is likely almost entirely from the ancillary revenue, not 40%, similar to G4.

We'll off course take away 40% of the revenue and they would be losing money.

But that is not the point. Spirit would like to eventually whittle down the actual fare paid to as small a number as possible (as I mentioned prior they managed to lower by $10 in the last year), and instead make the bulk of their money of ala-carte items customers purchase.

Quoting MaverickM11 (Reply 32):
What were the analyst expectations prior?

They matched analyst estimates to the penny per share.

Quoting MaverickM11 (Reply 32):
Did they even mention FLL?

Not really except small blurb that Caribbean was doing good. I think the issue with FLL is facility limitations.
From the desert to the sea, to all of Southern California
 
MaverickM11
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Joined: Thu Apr 06, 2000 1:59 pm

RE: Spirit Airlines Reports 3Q 2012 Financial Results

Thu Nov 01, 2012 5:22 pm

Quoting LAXintl (Reply 34):
But that is not the point.

The original question was how much of the profit was due to ancillary fees, and arguably the answer is all of it.

Quoting LAXintl (Reply 34):
I think the issue with FLL is facility limitations.

They've been pulling it back quite a bit more than any 'facility limitations'. I think the model has just grown away from FLL to where the returns are much better.
E pur si muove -Galileo
 
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drerx7
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Thu Nov 01, 2012 5:27 pm

NK is in a position to mix things up at IAH...would they monkey wrench the US-MEX route authorities?
Third Coast born, means I'm Texas raised
 
LAXintl
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Fri Nov 02, 2012 3:37 pm

Quoting drerx7 (Reply 36):
NK is in a position to mix things up at IAH...would they monkey wrench the US-MEX route authorities?

Well most US-Mexico markets outside of Mexico City allow 3-carrier designations, so even if Spirit secured a designation, should still be room for Southwest to play.

But the bigger effect might be a significant drop in Houston market fares. For instance at Dallas, the AA DFW-MEX fare is down to $114 each way these days now that Spirit has a daily flight to nearby Toluca.
From the desert to the sea, to all of Southern California
 
ROSWELL41
Topic Author
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Fri Nov 02, 2012 5:45 pm

Quoting RCS763AV (Reply 27):
Now, has anyone heard anything about the proposed and heavily mediatized (at least in Colombia) intra-andean flights? (BOG-LIM-BOG and BOG-UIO-BOG?) Slots are now available in BOG with the opening of the new terminal.

I have been wondering the same thing. NK spent a lot of time to gain the necessary approvals for these routes and yet nothing has been announced.
 
silentbob
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Fri Nov 02, 2012 6:50 pm

Quoting MaverickM11 (Reply 35):
The original question was how much of the profit was due to ancillary fees, and arguably the answer is all of it.

The original question implies that they follow a more traditional business model. The Spirit model is one that derives much, much more of its revenue from add-on fees by design. The important number with Spirit, as with every airline, is that they are profitable with their business model. The model Spirit uses works and they are poised for huge growth in the US over the next few years.
 
OB1504
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Joined: Tue Jul 27, 2004 5:10 am

RE: Spirit Airlines Reports 3Q 2012 Financial Results

Sat Nov 03, 2012 4:37 am

Quoting airbuske (Reply 31):
Spirit begins retrofitting it's in service aircraft with FTIS beginning February next year which means a lot of airplanes are going to be down for extended periods of time. My understanding is that these A319s are coming in on short term leases to fill in the gaps until the retrofit is completed on all effective aircraft (circa 2017).

Pardon my ignorance, but what is FTIS?

Quoting MaverickM11 (Reply 32):
They're probably losing money on the ticketed fare, and making it all on the ancillary revenue. The profit is likely almost entirely from the ancillary revenue, not 40%, similar to G4.

...yes. That's their business model. I can't imagine they've made any money off of my constant $20-$60 excursions throughout the country, but I've bought hundreds of dollars' worth of snacks, drinks, baggage, and seating assignments.

Quoting MaverickM11 (Reply 32):
Did they even mention FLL?
FLL is effectively maxed out until the terminal and runway expansions are complete.

Quoting LAXintl (Reply 34):
But that is not the point. Spirit would like to eventually whittle down the actual fare paid to as small a number as possible (as I mentioned prior they managed to lower by $10 in the last year), and instead make the bulk of their money of ala-carte items customers purchase.

   Spirit wants to get people on their airplanes so they can sell them stuff.

Quoting MaverickM11 (Reply 35):
They've been pulling it back quite a bit more than any 'facility limitations'. I think the model has just grown away from FLL to where the returns are much better.

Any perceived pulldowns have been due to a lack of equipment across the system as Spirit continues to grow out west, particularly at DFW. FLL-MSP starts this month.

[Edited 2012-11-02 21:38:48]
 
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lightsaber
Crew
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Sat Nov 03, 2012 5:24 am

Has Spirit bought the NEO yet? (Or committed to leases?)

Quoting Coronado (Reply 10):
If you add the your lease payments out over the length of the lease, you will be surprised how much more you paid for ''renting'' that asset than the asset is worth at the beginning of the lease.

Your forgetting opportunity cost. By leasing, Spirit is able to expand faster. By using operating leases, they are able to return a surplus of equipment far cheaper if they over-expand than other options.

If they have lease obligations but increase their profits due to it, so what?

Quoting LAXintl (Reply 14):
Not much visibility into 2013.

Ugh oh... Not for Spirit, but for the industry.

Quoting OB1504 (Reply 40):
FLL is effectively maxed out until the terminal and runway expansions are complete.

What is that timeline?

Lightsaber
"They did not know it was impossible, so they did it!" - Mark Twain
 
LAXintl
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Sat Nov 03, 2012 4:30 pm

Quoting OB1504 (Reply 40):
Pardon my ignorance, but what is FTIS?

Fuel Tank Inerting System

Quoting lightsaber (Reply 41):
Has Spirit bought the NEO yet? (Or committed to leases?)

Yes 45 from Airbus, and now 5 additional on lease from ILFC

http://www.airbus.com/presscentre/pr...family-order-including-45-a320neo/

=
From the desert to the sea, to all of Southern California
 
MaverickM11
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Sat Nov 03, 2012 5:24 pm



Quoting OB1504 (Reply 40):
FLL is effectively maxed out until the terminal and runway expansions are complete.

I think NK has migrated away from the original FLL hub model. I think it's mostly done, hence the silence on the issue.

Quoting OB1504 (Reply 40):
Any perceived pulldowns have been due to a lack of equipment across the system as Spirit continues to grow out west, particularly at DFW. FLL-MSP starts this month.

There's no 'perceived pull-down' at FLL; they've reduced their international flying out of FLL by almost a third. They may have a cap on growth because of facility issues, but they've pulled down noticeably in spite of that.

[Edited 2012-11-03 10:25:14]
E pur si muove -Galileo
 
slcdeltarumd11
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RE: Spirit Airlines Reports 3Q 2012 Financial Results

Sun Nov 04, 2012 12:55 am

Quoting jetfixr757 (Reply 3):

Before you start cheering and popping corks run the registration of random aircraft, I just ran 2 and they belong to leasing companies, that means DEBT, the jets and ground equipment is all on a NOTE, incase you don't know what that means its just like having a huge car loan...Sorry to pop your cherry!
Jet

Wow someone is trying to ruin the party    . Spirit has no debt that is totally true and they have a large amount of cash. They are very strong and could challenge a legacy for space if they wanted to. The are taking the smarter path and not needing to do that yet. Spirit has said they have a long list of city pairs they think have potential still so i am sure there is a ton that only have one airline flying them. Spirits future looks good and I am sure they could borrow money easily at a very low interest rate if they ever needed to. The Public seems to like this type of airline and continue to fly it even if the majority of legacy fanatics on a.net continue to slam it and want it to fail.

Quoting LAXintl (Reply 14):
o Vegas - Mesa example NK will eliminate routes that don't make money. Wont sit around and nurse markets.

Did they say this about Vegas specific? Spirit likes to never nurse routes too long and will pull the plug if a total looser but i think they are willing to give DFW flights a little more building time than LAS? Just my guess, but who knows?
 
LAXintl
Posts: 20183
Joined: Wed May 24, 2000 12:12 pm

RE: Spirit Airlines Reports 3Q 2012 Financial Results

Sun Nov 04, 2012 2:55 am

Quoting slcdeltarumd11 (Reply 44):
Did they say this about Vegas specific?

It was response to analyst question as to why the route got dropped. They simply said it failed to perform, and that they have no problem dropping lagging markets.

On prior calls, I recall them saying they have no geographic allegiances nor sweet spots in their heart for one city over another. Each route must support itself, otherwise its axed.
From the desert to the sea, to all of Southern California
 
CIDFlyer
Posts: 1894
Joined: Wed Apr 13, 2005 7:19 am

RE: Spirit Airlines Reports 3Q 2012 Financial Results

Sun Nov 04, 2012 11:19 pm

good to see NK doing good, their future expansion intrigues me. Its crazy to see how they have grown. What does the future hold for them? Will they only serve the larger cities like Southwest? Or could they take a page from Frontier and maybe funnel pax in from smaller/mid sized cities through "hubs" like ORD, DFW, FLL etc on a less than daily basis?? Should be interesting to see where they go!
 
OB1504
Posts: 3019
Joined: Tue Jul 27, 2004 5:10 am

RE: Spirit Airlines Reports 3Q 2012 Financial Results

Mon Nov 05, 2012 4:41 am

Quoting CIDFlyer (Reply 46):
Or could they take a page from Frontier and maybe funnel pax in from smaller/mid sized cities through "hubs" like ORD, DFW, FLL etc on a less than daily basis??

Some of their new destinations, like AZA/IWA, CRW, IAG, and PBG would indicate that they're borrowing from G4's playbook as well.
 
LAXintl
Posts: 20183
Joined: Wed May 24, 2000 12:12 pm

RE: Spirit Airlines Reports 3Q 2012 Financial Results

Mon Nov 05, 2012 3:54 pm

I don't think NK cares much if they operate from a major market or small town.

While a large city might provide more individual spoke opportunities, NK seems to look at each segments profitability on a stand alone basis.

So as NK works down that long list of opportunity routes they have identified, I suspect we will probably see a mix of both large, medium and maybe some rather small markets.
From the desert to the sea, to all of Southern California