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Spirit Airlines, Inc. (SAVE - Free Report) reported solid fourth-quarter 2022 results, wherein earnings and revenues outpaced the Zacks Consensus Estimate.
Quarterly earnings of 12 cents per share surpassed the Zacks Consensus Estimate of 4 cents and turned around from the year-ago quarter’s loss of 64 cents. Revenues of $1,391.3 million outpaced the Zacks Consensus Estimate of $1,389 million and improved 40.9% year over year on the back of increased flight volume and higher operating yields.
In fourth-quarter 2022, passenger revenues, which accounted for the bulk of the top line (98.4%), increased 41% year over year to $1,369.67 million. Other revenues increased 36.7% year over year to $21.63 million.
All comparisons (in %) are presented below on a year-over-year basis.
Reflecting the uptick in air-travel demand, consolidated traffic (measured in revenue passenger miles) at Spirit rose 13.8% in the reported quarter. To cater to this increased demand, capacity (measured in available seat miles) expanded to 12.1%. The load factor increased 1.2 points to 81% in the fourth quarter of 2022. Total operating revenue per available seat miles jumped 25.7% to 10.81 cents in the reported quarter. The average yield increased 23.7% to 13.34 cents.
Adjusted operating expenses (excluding fuel) escalated 58% to $1,333.7 million. The average fuel cost per gallon in the reported quarter rose to $3.55, up 47.3% year over year. Fuel gallons consumed skyrocketed 12.9% to $139.26 million, reflecting the use of more planes to cater to upbeat air-travel demand. Adjusted cost per available seat miles, excluding fuel, fell 0.3% in the reported quarter.
Spirit took delivery of 10 A320neo aircraft in the fourth quarter of 2022. The total number of aircraft in its fleet at the end of the reported quarter was 194, up 33.8% from fourth-quarter 2019.
The company exited the reported quarter with unrestricted cash, cash equivalents and short-term investments, and the liquidity available under the carrier’s revolving credit facility of $1.8 billion. Capital expenditure for the quarter was $55.7 million, primarily related to the purchase of spare parts.
Q1 Guidance
SAVE expects adjusted operating expenses of $1.39-$1.40 billion for the first quarter of 2023. The adjusted operating margin is expected to decline 2-4%. Fuel gallons consumed are expected to be $141.3 million in the first quarter. The fuel price per gallon is anticipated to be $3.20. The effective tax rate is expected to be 24%. Available seat miles are anticipated to increase 13.2% from the first-quarter 2022 actuals.
United Airlines’ (UAL - Free Report) fourth-quarter 2022 earnings of $2.46 per share beat the Zacks Consensus Estimate of $2.07. In the year-ago quarter, UAL incurred a loss of $1.60 per share when air-travel demand was not as buoyant as in the current scenario. The fourth quarter of 2022 was the third consecutive profitable quarter at UAL since the onset of the pandemic.
Operating revenues of $12,400 million beat the Zacks Consensus Estimate of $12,230 million. UAL’s revenues increased 51.37% year over year, owing to upbeat air-travel demand. The optimistic air-travel demand scenario is also evident from the fact that total operating revenues increased 13.9% from fourth-quarter 2019 (pre-coronavirus) levels.
Delta Air Lines’ (DAL - Free Report) fourth-quarter 2022 earnings (excluding 19 cents from non-recurring items) of $1.48 per share beat the Zacks Consensus Estimate of $1.29 per share. DAL reported earnings of 22 cents per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
DAL reported revenues of $13,435 million, which also surpassed the Zacks Consensus Estimate of $13,030.3 million. Driven by the high air-travel demand, total revenues increased more than 41.87% on a year-over-year basis.
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) fourth-quarter 2022 earnings of $1.92 per share missed the Zacks Consensus Estimate of $2.45 and declined 16% year over year.
JBHT’s total operating revenues of $3,649.62 million also lagged the Zacks Consensus Estimate of $3,796.8 million. The top line jumped 4.4% year over year. Total operating revenues, excluding fuel surcharges, fell 2.9% year over year.
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Spirit Airlines (SAVE) Q4 Earnings & Revenues Beat, Rise Y/Y
Spirit Airlines, Inc. (SAVE - Free Report) reported solid fourth-quarter 2022 results, wherein earnings and revenues outpaced the Zacks Consensus Estimate.
Quarterly earnings of 12 cents per share surpassed the Zacks Consensus Estimate of 4 cents and turned around from the year-ago quarter’s loss of 64 cents. Revenues of $1,391.3 million outpaced the Zacks Consensus Estimate of $1,389 million and improved 40.9% year over year on the back of increased flight volume and higher operating yields.
In fourth-quarter 2022, passenger revenues, which accounted for the bulk of the top line (98.4%), increased 41% year over year to $1,369.67 million. Other revenues increased 36.7% year over year to $21.63 million.
All comparisons (in %) are presented below on a year-over-year basis.
Reflecting the uptick in air-travel demand, consolidated traffic (measured in revenue passenger miles) at Spirit rose 13.8% in the reported quarter. To cater to this increased demand, capacity (measured in available seat miles) expanded to 12.1%. The load factor increased 1.2 points to 81% in the fourth quarter of 2022. Total operating revenue per available seat miles jumped 25.7% to 10.81 cents in the reported quarter. The average yield increased 23.7% to 13.34 cents.
Adjusted operating expenses (excluding fuel) escalated 58% to $1,333.7 million. The average fuel cost per gallon in the reported quarter rose to $3.55, up 47.3% year over year. Fuel gallons consumed skyrocketed 12.9% to $139.26 million, reflecting the use of more planes to cater to upbeat air-travel demand. Adjusted cost per available seat miles, excluding fuel, fell 0.3% in the reported quarter.
Spirit took delivery of 10 A320neo aircraft in the fourth quarter of 2022. The total number of aircraft in its fleet at the end of the reported quarter was 194, up 33.8% from fourth-quarter 2019.
The company exited the reported quarter with unrestricted cash, cash equivalents and short-term investments, and the liquidity available under the carrier’s revolving credit facility of $1.8 billion. Capital expenditure for the quarter was $55.7 million, primarily related to the purchase of spare parts.
Q1 Guidance
SAVE expects adjusted operating expenses of $1.39-$1.40 billion for the first quarter of 2023. The adjusted operating margin is expected to decline 2-4%. Fuel gallons consumed are expected to be $141.3 million in the first quarter. The fuel price per gallon is anticipated to be $3.20. The effective tax rate is expected to be 24%. Available seat miles are anticipated to increase 13.2% from the first-quarter 2022 actuals.
Currently, Spirit Airlines carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Transportation Companies
United Airlines’ (UAL - Free Report) fourth-quarter 2022 earnings of $2.46 per share beat the Zacks Consensus Estimate of $2.07. In the year-ago quarter, UAL incurred a loss of $1.60 per share when air-travel demand was not as buoyant as in the current scenario. The fourth quarter of 2022 was the third consecutive profitable quarter at UAL since the onset of the pandemic.
Operating revenues of $12,400 million beat the Zacks Consensus Estimate of $12,230 million. UAL’s revenues increased 51.37% year over year, owing to upbeat air-travel demand. The optimistic air-travel demand scenario is also evident from the fact that total operating revenues increased 13.9% from fourth-quarter 2019 (pre-coronavirus) levels.
Delta Air Lines’ (DAL - Free Report) fourth-quarter 2022 earnings (excluding 19 cents from non-recurring items) of $1.48 per share beat the Zacks Consensus Estimate of $1.29 per share. DAL reported earnings of 22 cents per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
DAL reported revenues of $13,435 million, which also surpassed the Zacks Consensus Estimate of $13,030.3 million. Driven by the high air-travel demand, total revenues increased more than 41.87% on a year-over-year basis.
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) fourth-quarter 2022 earnings of $1.92 per share missed the Zacks Consensus Estimate of $2.45 and declined 16% year over year.
JBHT’s total operating revenues of $3,649.62 million also lagged the Zacks Consensus Estimate of $3,796.8 million. The top line jumped 4.4% year over year. Total operating revenues, excluding fuel surcharges, fell 2.9% year over year.