Originally Posted by
FlyFlorida2025
No, they made 20 million when you factor in the AERCAP settlements etc. The bottom line is they may not have drawn from the DIP and they were positive + 20 million in October. This is much different from what you have been telling everyone. They are not liquidating, they are restructuring. November will be interesting.
No Spirit didn't "make" $20M. The terminated leases are on the balance sheet and because the accounted for liability of the leases was more than the accounting value of leases terminated, this is an income GAIN under GAAP.
All adjustments to the balance sheet have to show as a gain or loss for income reporting because of tax liability. Spirit lost $96M in operating as an airline in October, but there was a $124 DIFFERENCE between the Asset value and Liability value, it came over as a "gain" for earnings. But it was non cash and only affected possible future tax payments on earnings, which it would have because it has billions in NOL carryforwards.