Originally Posted by hercretired (Post 3755369)

I think the host needs a DOT drug screening done on him

"assessing options" yeah no shi*

Merger is NOT on. A federal judge shot it down, maybe some news stations don't reach some folks

"No Ch 11 filing on the horizon" - says who? Him ?

capacity growth up 1-2 percent ? How? 1 plus 1 does not equal 25. How do you get "capacity growth" when you are returning airplanes and closing cities. (??????)

Originally Posted by gripngrab (Post 3755375)

Man you guys are stupid. I guess you were here during covid offering medical advice and the do's and don'ts then. Didn't know you were a CPA on the side too.

"assessing options" became the financing restructuring deal. So that's the executed option.

it's not capacity growth. It's capacity neutral in 24 vs 23 and pulling down flying in cities where yields were low and redeploying where they make the most money.

Originally Posted by emb145 (Post 3755283)

Townhall OK, just basic information, lots of generalities. Biggest question I had was, is there a Plan B? From the answer given, it seems that for the previous 9 months, they have been preparing for a stand alone Plan B. Fooled me previous couple of years, I didn't think there was one but seems like good news.

1. Best news, no Chapter 11 filing on the horizon with the finance restructuring.

2. Question asked about size of Spirit. Originally, Spirit hired for about 15-17% growth for 2024. When you take into account the 319s going away coupled with the NEO engine aircraft being down along with the deliveries scheduled this year, 2024 is very slightly above the capacity of 2023. Not as bad as I had thought but still overstaffed for 2024. Hopefully they realize that this will work out and they're going to need these pilots and don't run people off by doing a downgrade. I wouldn't think that listening to the call but you never know.

3. Network changes have already been occurring as cities with low yields have been downsized or pulled altogether. He didn't say specifically but in addition to DEN being completely gone, MSP, SEA, PDX, STL and CLE are some cities that have seen big reductions in flying just by looking at the schedules online.

4. Jetblue merger still on, Spirit wants appeal and is awaiting Jetblue to join for a joint appeal. Either way, Spirit is moving ahead with Plan B in the interim and working on getting to profitablility.

5. Moderator only picking softball questions. I posted a question about Spirit leveraging the DOJs claim that we are vital to a segment of the population to get gates in cities where we have been blocked that are obviously profitable. DFW, ORD and ATL specifically. I posed the question in a different way a second time but the moderator still wouldn't post it. I think it would be prime time for Spirit to approach the DOJ to get them to join in and put pressure on these airports to release gates to us that are being blocked by the Big 3. Why not? They are the ones who sued saying we are vital. Call their bluff, have them join a lawsuit against the airport authorities if necessary. I'm sure they wouldn't be hypocritical and ignore the request. 🤣

Here are some bullet points from Yahoo finance today:

1. Q4 Revenue estimate towards the top end of the guidance. Adjusted operating market revised upwards 4.5% to negative 12-13%
2. As of December 31, 2023, Spirit had $1.3 billion of liquidity, including unrestricted cash and cash equivalents, short-term investment securities and $300 million of liquidity under the Company’s revolving credit facility.
3.In December 2023, the Company completed sale-leaseback transactions for 20 aircraft, resulting in repayment of approximately $325 million of indebtedness on those aircraft and net cash proceeds of $320 million. In January 2024, the Company completed sale-leaseback transactions for an additional five aircraft, resulting in repayment of approximately $140 million of indebtedness on those aircraft and net cash proceeds of $99 million. In total, these transactions resulted in net cash proceeds to the Company of approximately $419 million.
4. Spirit and Pratt & Whitney have been in negotiations regarding fair compensation for the financial damages related to the geared turbo fan (GTF) neo engine availability issues. Discussions with Pratt have progressed considerably since October, and while no agreement has been reached to date, the Company believes the amount of compensation it will receive will be a significant source of liquidity over the next couple of years.
5. The Company is also assessing options to refinance its 2025 debt maturities, including the $1.1 billion of aggregate principal amount of 8.00% Senior Secured Notes.
6. For the first quarter 2024, the Company estimates capacity growth will be up 1 to 2 percent year over year.

Originally Posted by hercretired (Post 3755415)

It is not capacity growth in 24 ?



Or it is capacity growth in 24 ?

Sorry for being "stupid" but my public school education has made me be skeptical when airline management speaks.

Originally Posted by Halon1211 (Post 3755533)

Did anybody find it funny that when TC was asked about the timeline to decide whether or not Jetblue was going to appeal the decision he said definitely soon, but within 30 days.

then it was a literally an hour later after the Townhall.

Originally Posted by Bluesteal (Post 3755569)

I dont find it funny, thats how business works.. you have to use your words carefully in the business world. You can't go running your mouth before things go officially public. The business world is similar to having security briefings in the military.. when you have classified information, you cant speak. The business world works the same way for the people on the inside. When information goes public then you can speak in detail about it.

Originally Posted by AbjectFutility (Post 3755587)

This is true IMO. The next layer is that everything he said in the townhall is equally questionable. Anything he said that made you feel better or more secure is probably misleading.

Good luck!

Originally Posted by JulesWinfield (Post 3755297)

1.3B in cash, but 1.1B due in 2025, and losing ~100M per quarter doesn’t leave much runway.