World Airlines Financial Results 2Q 2018
Fort Lauderdale-based ultra-LCC Spirit Airlines returned to profitability in the second quarter of 2018, posting an $11.3 million net profit on top of a 21.6% rise in revenue. While Spirit’s 2Q net result is a fraction of what the carrier reported a year ago ($77.2 million net profit in 2Q 2017), it is nonetheless a rebound from the $45 million net loss the company reported in the 2018 March quarter.
“Despite materially higher fuel prices, our second-quarter results exceeded our expectations due to strong ancillary revenue production and better than expected cost performance, primarily driven by [our] operational performance,” Spirit CEO and director Bob Fornaro told analysts July 26. According to US Department of Transportation statistics, Spirit achieved a 79.6% on-time performance, Fornaro said, the airline’s best second-quarter on-time record ever.
Spirit’s second-quarter revenue totaled $851.8 million, compared to $700.2 million a year ago, driven by an 18.9% increase in flight departures, but the airline’s TRASM fell 6.8% year-over-year (YOY) as operating yields fell 5% YOY and average stage lengths increased 7% compared to 2Q 2017.
Spirit’s total non-ticket revenue increased 25.4% YOY during the quarter. Per passenger flight segment, non-ticket revenue increased 3% YOY, while fare revenue per passenger flight segment decreased 2.8%. Total operating expenses leapt 30.7% YOY to $743.3 million, driven primarily by increases in flight volume, fuel rates (up 73% YOY) and labor costs…
