Originally Posted by
FriendlyPilot
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.
What blows my mind is even after the debate on how many tens of millions of dollars Spirit has lost this month and every month over the last several years, all the chief pilots leaving including the system chief, the ALPA leadership gone, investor after investor pulling out, planes/assets gone, and now even the media getting on board. There are still people reading all this who aren’t ready to retire saying it will be fine. Not only that but militant about how great their QOL is, and how stupid everyone that left is. Absolute bananas.