"The McDonald's of Airlines"
06-25-2009 | 05:52 AM
#21
Banned
Joined: Feb 2008
Posts: 501
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From: A320 CA
Spirit Financial Data Shows Second Straight Quarterly Profit
Aviation Daily Jun 18 , 2009 , p. 12
Andrew Compart
Spirit Airlines turned a $17 million profit in the first quarter, with ancillary revenue at the fee-dependent, low-fare airline accounting for about 21% of its operating revenue, according to figures released June 15 by the U.S. Transportation Dept.’s Bureau of Transportation Statistics.
That marks the second straight profitable quarter for the Florida-based, low-cost carrier following its $49 million loss in the third quarter of 2008. Spirit reported an $11.1 million profit for fourth quarter 2008. In the second quarter of 2008, it made $17.6 million.
The privately held carrier does not report its quarterly financial figures, but must submit them to the DOT, which releases them, as well as data collected from other carriers, several months later.
Barry Biffle, Spirit senior VP and chief marketing officer, said the first quarter profit is in keeping with “two decent years” for Spirit when compared to the rest of the industry.
“In this industry, that makes you one of the tallest midgets,” Biffle remarked. Nonetheless, Biffle said the airline is encouraged about this year, even though, like every other carrier, it has seen some deterioration in demand because of the economy.
The airline’s low costs make it “built to live off low fares,” he said, comparing its business model to Walmart and Costco. He also said its current “run rate” on ancillary revenue as a percentage of total revenue is running in the high 20s, with a take of about $30 per passenger.
That does not mean Spirit is trouble-free, however. For example, management’s relationship with its pilots union has become contentious over issues related to the current and future contract, and the union’s membership voted last month to authorize a strike if contract talks do not proceed and the two sides go into a 30-day, cooling-off period (DAILY, May 20). The contract talks are in mediation.
Also, given the state of the industry right now, the airline does not plan any capacity growth for this fall, Biffle said. But he said the airline does plan to grow — at a rate yet to be decided — in the first half of 2010.
The figures also show Spirit with $108.5 million in cash and short-term investments ($42.7 million of which is cash).
“It’s not the largest cash balance, but if you’re not burning cash, you don’t need it,” Biffle said.
Aviation Daily Jun 18 , 2009 , p. 12
Andrew Compart
Spirit Airlines turned a $17 million profit in the first quarter, with ancillary revenue at the fee-dependent, low-fare airline accounting for about 21% of its operating revenue, according to figures released June 15 by the U.S. Transportation Dept.’s Bureau of Transportation Statistics.
That marks the second straight profitable quarter for the Florida-based, low-cost carrier following its $49 million loss in the third quarter of 2008. Spirit reported an $11.1 million profit for fourth quarter 2008. In the second quarter of 2008, it made $17.6 million.
The privately held carrier does not report its quarterly financial figures, but must submit them to the DOT, which releases them, as well as data collected from other carriers, several months later.
Barry Biffle, Spirit senior VP and chief marketing officer, said the first quarter profit is in keeping with “two decent years” for Spirit when compared to the rest of the industry.
“In this industry, that makes you one of the tallest midgets,” Biffle remarked. Nonetheless, Biffle said the airline is encouraged about this year, even though, like every other carrier, it has seen some deterioration in demand because of the economy.
The airline’s low costs make it “built to live off low fares,” he said, comparing its business model to Walmart and Costco. He also said its current “run rate” on ancillary revenue as a percentage of total revenue is running in the high 20s, with a take of about $30 per passenger.
That does not mean Spirit is trouble-free, however. For example, management’s relationship with its pilots union has become contentious over issues related to the current and future contract, and the union’s membership voted last month to authorize a strike if contract talks do not proceed and the two sides go into a 30-day, cooling-off period (DAILY, May 20). The contract talks are in mediation.
Also, given the state of the industry right now, the airline does not plan any capacity growth for this fall, Biffle said. But he said the airline does plan to grow — at a rate yet to be decided — in the first half of 2010.
The figures also show Spirit with $108.5 million in cash and short-term investments ($42.7 million of which is cash).
“It’s not the largest cash balance, but if you’re not burning cash, you don’t need it,” Biffle said.
06-25-2009 | 06:12 AM
#22
Gets Weekends Off
Joined: Apr 2008
Posts: 184
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From: A320 CA
Spirit sees slumping demand in the Caribbean
Megan Kuhn, Washington DC (23Jun09, 22:51 GMT, 359 words)
Spirit Airlines' visiting friends and relatives (VFR) traffic could take a hit in the Caribbean next year as the economic downturn continues.
The airline serves 24 Caribbean and Latin American destinations, and a large portion of Spirit's passengers in the Caribbean and system-wide are a mix of leisure and VFR.
While Spirit's leisure and VFR traffic has not been immune to the economic downturn, the impact could worsen.
Passengers in the VFR sector are still flying to the Caribbean at this point, but a slowdown in the segment could happen in the next 12 to 24 months, Spirit senior vice president and chief marketing officer Barry Biffle tells ATI.
As for leisure travellers, those who visit the Caribbean on a yearly basis will continue to fly to the region, but they will not spend at the same level in 2010 as they did in 2007 or 2008, Biffle says.
In the meantime, Spirit is seeing year-over-year softness in both transcontinental markets such as Fort Lauderdale-Los Angeles and leisure destinations, particularly Myrtle Beach, South Carolina. Spirit links Myrtle Beach year-round with Detroit, Boston and its Fort Lauderdale hub.
Myrtle Beach in the past has positioned itself as a cheaper family vacation destination compared with Orlando, Biffle says. But as Orlando and other cities such as Las Vegas have reacted to the downturn by reducing room rates, pressure has increased on Myrtle Beach and similar markets, he explains.
As a result, Orlando and Las Vegas bookings are "doing great", Biffle says.
But while the economic downturn does not appear to be getting worse, it does not mean it is improving, he cautions. As a result, Biffle does not predict system-wide demand returning to 2007-2008 levels anytime soon.
However, Biffle expects the low-cost carrier's 30% to 40% cost advantage over the majority of its competitors to carry it through the recession. In addition, he does not see the downturn as carrying only bleak news for the airline.
Spirit has seen some improvement in business traffic, which is typically a small segment for the carrier. Most of the increase is from business travellers responsible for purchasing their own tickets a Spirit spokeswoman says.
Source: Air Transport Intelligence
Megan Kuhn, Washington DC (23Jun09, 22:51 GMT, 359 words)
Spirit Airlines' visiting friends and relatives (VFR) traffic could take a hit in the Caribbean next year as the economic downturn continues.
The airline serves 24 Caribbean and Latin American destinations, and a large portion of Spirit's passengers in the Caribbean and system-wide are a mix of leisure and VFR.
While Spirit's leisure and VFR traffic has not been immune to the economic downturn, the impact could worsen.
Passengers in the VFR sector are still flying to the Caribbean at this point, but a slowdown in the segment could happen in the next 12 to 24 months, Spirit senior vice president and chief marketing officer Barry Biffle tells ATI.
As for leisure travellers, those who visit the Caribbean on a yearly basis will continue to fly to the region, but they will not spend at the same level in 2010 as they did in 2007 or 2008, Biffle says.
In the meantime, Spirit is seeing year-over-year softness in both transcontinental markets such as Fort Lauderdale-Los Angeles and leisure destinations, particularly Myrtle Beach, South Carolina. Spirit links Myrtle Beach year-round with Detroit, Boston and its Fort Lauderdale hub.
Myrtle Beach in the past has positioned itself as a cheaper family vacation destination compared with Orlando, Biffle says. But as Orlando and other cities such as Las Vegas have reacted to the downturn by reducing room rates, pressure has increased on Myrtle Beach and similar markets, he explains.
As a result, Orlando and Las Vegas bookings are "doing great", Biffle says.
But while the economic downturn does not appear to be getting worse, it does not mean it is improving, he cautions. As a result, Biffle does not predict system-wide demand returning to 2007-2008 levels anytime soon.
However, Biffle expects the low-cost carrier's 30% to 40% cost advantage over the majority of its competitors to carry it through the recession. In addition, he does not see the downturn as carrying only bleak news for the airline.
Spirit has seen some improvement in business traffic, which is typically a small segment for the carrier. Most of the increase is from business travellers responsible for purchasing their own tickets a Spirit spokeswoman says.
Source: Air Transport Intelligence
06-25-2009 | 03:02 PM
#24
First Rule of Fight Club
Joined: Jan 2007
Posts: 1,536
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From: My seat smells like cat pee
Business & Pleasure - 23 June 2009, 3:44 PM
Miramar, Florida.- The votes are in and the people have spoken. Spirit has been voted best airline and the ultra low cost carrier is celebrating by offering 30-cent fares to Cancun and 69-cent fares to Santo Domingo.
The International Business Council of Florida (IBCF) has presented Spirit Airlines with its prestigious "Florida Business Award" for best company in the airline category. Spirit was among a select group of finalists nominated by the IBCF's strategic alliance partners, including leading business organizations and chambers of commerce from throughout the state.
Final winners were determined during online voting open to the public.
Spirit was hands down the top vote getter in the airline category garnering 44 percent of the votes and beating out American, Delta, Southwest and United, among others.
The International Business Council of Florida's "Florida Business Award" was created to honor and generate public recognition of the achievements and positive contributions of Florida organizations and businesses. It is one of the largest award celebrations in the State, recognizing the outstanding performance of 23 business categories. Other notable winning companies included Royal Caribbean, Walt Disney World Co., Bank Atlantic and the American Cancer Society, among others.
"We are extremely proud to have received this award. It's a true testament from the traveling public and our customers in support of the Spirit ultra low fares they have come to know and love," said Spirit Senior Director Michael Pewther. "And what better way to thank all of our customers who voted for us than by throwing one of our outrageous sales."
Miramar, Florida.- The votes are in and the people have spoken. Spirit has been voted best airline and the ultra low cost carrier is celebrating by offering 30-cent fares to Cancun and 69-cent fares to Santo Domingo.
The International Business Council of Florida (IBCF) has presented Spirit Airlines with its prestigious "Florida Business Award" for best company in the airline category. Spirit was among a select group of finalists nominated by the IBCF's strategic alliance partners, including leading business organizations and chambers of commerce from throughout the state.
Final winners were determined during online voting open to the public.
Spirit was hands down the top vote getter in the airline category garnering 44 percent of the votes and beating out American, Delta, Southwest and United, among others.
The International Business Council of Florida's "Florida Business Award" was created to honor and generate public recognition of the achievements and positive contributions of Florida organizations and businesses. It is one of the largest award celebrations in the State, recognizing the outstanding performance of 23 business categories. Other notable winning companies included Royal Caribbean, Walt Disney World Co., Bank Atlantic and the American Cancer Society, among others.
"We are extremely proud to have received this award. It's a true testament from the traveling public and our customers in support of the Spirit ultra low fares they have come to know and love," said Spirit Senior Director Michael Pewther. "And what better way to thank all of our customers who voted for us than by throwing one of our outrageous sales."
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