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Spirit Airlines (SAVE) Q1 Loss Narrows, Revenues Lag Estimates
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Spirit Airlines, Inc. (SAVE - Free Report) reported mixed first-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed.
Quarterly loss (excluding 13 cents from non-recurring items) of 82 cents per share was narrower than the Zacks Consensus Estimate of a loss of 89 cents. In the year ago quarter, SAVE posted a loss of $1.60.
Revenues of $1,349.8 million missed the Zacks Consensus Estimate of $1,353.5 million. However, the top line improved 39.5% year over year on the back of increased flight volume and higher operating yields.
Spirit Airlines, Inc. Price, Consensus and EPS Surprise
In first-quarter 2023, passenger revenues, which accounted for the bulk of the top line (98.3%), increased 39.8% year over year to $1,327.5 million. Other revenues increased 26.9% year over year to $22.3 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 18% in the reported quarter. To cater to this increased demand, capacity (measured in available seat miles) expanded to 12.7%. The load factor increased 3.6 points to 80.8%.
Total operating revenue per available seat miles jumped 23.9% to 10.22 cents in the reported quarter. The average yield increased 18.2% to 12.64 cents.
Adjusted operating expenses (excluding fuel) escalated 25.1% to $1,441.1 million. The average fuel cost per gallon in the reported quarter rose to $3.43, up 16.3%. Fuel gallons consumed skyrocketed 14% to $142.34 million, reflecting the use of more planes to cater to upbeat air-travel demand. Adjusted cost per available seat miles, excluding fuel, increased 8.1%.
Spirit took delivery of five new A320neo aircraft in the first quarter of 2023. Total number of aircraft in its fleet at the end of the quarter under review was 195, up 10.8% from first-quarter 2022.
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 $1.7 billion. Capital expenditure for the quarter was $86 million, primarily related to net outflows of aircraft pre-delivery deposits, expenditures related to the building of Spirit's new headquarter’s campus in Dania Beach, FL and spare parts, including one spare engine.
Q2 Guidance
Total revenues are expected to be between $1.46-$1.48 billion. The midpoint of the guided range $1.47 billion is below the Zacks Consensus Estimate of $1.57 billion.
Adjusted operating margin is expected to be between 4.5% and 6.5%. Fuel gallons consumed are expected to be $151 million.
Fuel price per gallon is anticipated to be $2.60. The effective tax rate is projected to be 25%. Available seat miles are anticipated to increase 17.7% from second-quarter 2022 actuals.
Q1 Performance of Some Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) first-quarter 2023 earnings of $1.89 per share missed the Zacks Consensus Estimate of $2.04 and declined 17.5% year over year.
JBHT’s total operating revenues of $3,229.58 million also lagged the Zacks Consensus Estimate of $3,434.4 million and fell 7.4% year over year. The downfall was due to declines in the volume of 25% in Integrated Capacity Solutions (ICS), 5% in Intermodal (JBI) and 17% in Final Mile Services (FMS), respectively. A decline of 17% in revenue per load in Truckload (JBT) also added to the woes. Revenue declines in ICS, JBI, FMS and JBT were partially offset by Dedicated Contract Services revenue growth of 13%. JBHT’s total operating revenues, excluding fuel surcharges, decreased 10.2% year over year.
Delta Air Lines’ (DAL - Free Report) first-quarter 2023 earnings (excluding 82 cents from non-recurring items) of 25 cents per share missed the Zacks Consensus Estimate of 29 cents. Volatile fuel price and unfavorable weather conditions led to this downtick. DAL reported a loss of $1.23 per share a year ago as air-travel demand was not so buoyant back then.
DAL reported revenues of $12,759 million, which missed the Zacks Consensus Estimate of $12,767.4 million. However, driven by higher air-travel demand, total revenues increased 36.49% on a year-over-year basis.
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Spirit Airlines (SAVE) Q1 Loss Narrows, Revenues Lag Estimates
Spirit Airlines, Inc. (SAVE - Free Report) reported mixed first-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed.
Quarterly loss (excluding 13 cents from non-recurring items) of 82 cents per share was narrower than the Zacks Consensus Estimate of a loss of 89 cents. In the year ago quarter, SAVE posted a loss of $1.60.
Revenues of $1,349.8 million missed the Zacks Consensus Estimate of $1,353.5 million. However, the top line improved 39.5% year over year on the back of increased flight volume and higher operating yields.
Spirit Airlines, Inc. Price, Consensus and EPS Surprise
Spirit Airlines, Inc. price-consensus-eps-surprise-chart | Spirit Airlines, Inc. Quote
In first-quarter 2023, passenger revenues, which accounted for the bulk of the top line (98.3%), increased 39.8% year over year to $1,327.5 million. Other revenues increased 26.9% year over year to $22.3 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 18% in the reported quarter. To cater to this increased demand, capacity (measured in available seat miles) expanded to 12.7%. The load factor increased 3.6 points to 80.8%.
Total operating revenue per available seat miles jumped 23.9% to 10.22 cents in the reported quarter. The average yield increased 18.2% to 12.64 cents.
Adjusted operating expenses (excluding fuel) escalated 25.1% to $1,441.1 million. The average fuel cost per gallon in the reported quarter rose to $3.43, up 16.3%. Fuel gallons consumed skyrocketed 14% to $142.34 million, reflecting the use of more planes to cater to upbeat air-travel demand. Adjusted cost per available seat miles, excluding fuel, increased 8.1%.
Spirit took delivery of five new A320neo aircraft in the first quarter of 2023. Total number of aircraft in its fleet at the end of the quarter under review was 195, up 10.8% from first-quarter 2022.
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 $1.7 billion. Capital expenditure for the quarter was $86 million, primarily related to net outflows of aircraft pre-delivery deposits, expenditures related to the building of Spirit's new headquarter’s campus in Dania Beach, FL and spare parts, including one spare engine.
Q2 Guidance
Total revenues are expected to be between $1.46-$1.48 billion. The midpoint of the guided range $1.47 billion is below the Zacks Consensus Estimate of $1.57 billion.
Adjusted operating margin is expected to be between 4.5% and 6.5%. Fuel gallons consumed are expected to be $151 million.
Fuel price per gallon is anticipated to be $2.60. The effective tax rate is projected to be 25%. Available seat miles are anticipated to increase 17.7% from second-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.
Q1 Performance of Some Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) first-quarter 2023 earnings of $1.89 per share missed the Zacks Consensus Estimate of $2.04 and declined 17.5% year over year.
JBHT’s total operating revenues of $3,229.58 million also lagged the Zacks Consensus Estimate of $3,434.4 million and fell 7.4% year over year. The downfall was due to declines in the volume of 25% in Integrated Capacity Solutions (ICS), 5% in Intermodal (JBI) and 17% in Final Mile Services (FMS), respectively. A decline of 17% in revenue per load in Truckload (JBT) also added to the woes. Revenue declines in ICS, JBI, FMS and JBT were partially offset by Dedicated Contract Services revenue growth of 13%. JBHT’s total operating revenues, excluding fuel surcharges, decreased 10.2% year over year.
Delta Air Lines’ (DAL - Free Report) first-quarter 2023 earnings (excluding 82 cents from non-recurring items) of 25 cents per share missed the Zacks Consensus Estimate of 29 cents. Volatile fuel price and unfavorable weather conditions led to this downtick. DAL reported a loss of $1.23 per share a year ago as air-travel demand was not so buoyant back then.
DAL reported revenues of $12,759 million, which missed the Zacks Consensus Estimate of $12,767.4 million. However, driven by higher air-travel demand, total revenues increased 36.49% on a year-over-year basis.