Originally Posted by
Jdub2
I see an operating loss of $28M but a net loss of $130M. Where did you see $58M? And what was the $90M reorg expenses??
Stated in monthly terms instead of daily, $63.6M of fuel expenses... so $124M/mth in fuel now. Ouch
If you look at the Earnings Statement the Operating Loss is indeed $28M, but there is a $30M gain from the sale of the 2 ORD gates to United. That $30M made the otherwise $58M loss a $28M loss. This is because GAAP requires this sale to be accounted for and they took the entire purchase price as a "gain" to income.
What's worse is that this $30M didn't go into the Spirit cash account, but instead went directly to the DIP lenders as a payment. Its instead just a passthrough that they would have had to pay taxes on, except there are no taxes.
Effectively they lost $58M and since the non-operating expenses are substantial as well, the cash flow is actually worse than this.