Spirit Airlines Ch.11

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07-28-2024 | 10:15 AM

#141

putzin

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Joined: Jun 2006

Posts: 1,600

Likes: 33

Quote:

Originally Posted by drywhitetoast

Shanty town?

That would be funny if it wasn't so accurate and the pretend makeover is going to be half ass, which is so spirit.

07-29-2024 | 09:40 PM

#142

gonyon

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Joined: Oct 2010

Posts: 1,499

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Quote:

Originally Posted by bluespoon

Thats all good except the legacy’s already have a head start on that business model and will match you until the new Spirit can’t go on. The issue is that ULCCs are just not ultra low cost anymore. Either you lower costs by BK and stay as you are or that’s it.

whats NK's current CASM and RASM compared to the big 4? I think it may be more of a revenue issue vs cost issue compared to them?

07-30-2024 | 07:42 AM

#143

Name User

Gets Weekends Off

Joined: Mar 2014

Posts: 4,153

Likes: 341

Quote:

Originally Posted by gonyon

whats NK's current CASM and RASM compared to the big 4? I think it may be more of a revenue issue vs cost issue compared to them?

Pre-covid their CASM-ex was around $0.07 IIRC, basically half of the legacies. They were eating everyone's lunch. Looks like on the latest quarterly it's $.0767, so not much has changed. This is definitely a revenue issue.

Spirit's prices were so low they were stimulating demand, they weren't just stealing pax from other carriers. But they were also making money at those prices. Not quite sure what happened here.

07-30-2024 | 08:11 AM

#144

gonyon

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Joined: Oct 2010

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Quote:

Originally Posted by Name User

If they can offer those new purchase options in a way that isn't confusing to cusomers and at a price far lower than the legacies, maybe we can get a little market mojo back.

07-30-2024 | 09:55 AM

#145

afterburn81

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Joined: Apr 2007

Posts: 1,412

Likes: 12

From: A320

Quote:

Originally Posted by Name User

Also perceiving our airplanes as full as a metric of success is skewed. Due to the fact that much of our available seat capacity is unusable. 30 aircraft off line at anytime is incredibly burdensome.

07-30-2024 | 10:55 AM

#146

Stayontarget

Almost there

Joined: Apr 2021

Posts: 2,010

Likes: 142

Quote:

Originally Posted by Name User

Fuel costs, poor reliability leading to lower utilization, and the legacies pivoted

https://youtu.be/4-Pu3CXatsA?feature=shared

07-30-2024 | 06:29 PM

#147

Cachaco

CHILLAX

Joined: Dec 2023

Posts: 211

Likes: 24

Quote:

Originally Posted by Name User

I don’t think you are looking in the right place. Directly from Q2 financial reports: CASM 10.92 vs RASM 9.38. Spirit model is based on very low CASM, very high aircraft utilization, neither optimal right now, combined with saturated ATC system that is causing disruptions and delays. Spirit might have a small revenue, identity problem, but an LCC is just that, low cost, when your CASM JUMPS 50% but your revenue only jumps 5-10%, and you can’t use your assets to the max to generate more revenue, there is your problem.

CASM trends:
2017 7.59
2018 7.93
2019 8.12
2020 7.00 (COVID)
2021 8.22
2022 11.37
2023 10.51

Straight from investors website.

07-30-2024 | 09:27 PM

#148

Name User

Gets Weekends Off

Joined: Mar 2014

Posts: 4,153

Likes: 341

Quote:

Originally Posted by Cachaco

Because fuel costs are widely variable CASM-ex is generally used to compare, not CASM.

I got the CASM-ex right off the investors site for the past quarter.

07-31-2024 | 12:23 AM

#149

bluespoon

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Joined: Mar 2023

Posts: 643

Likes: 73

Quote:

Originally Posted by gonyon

If they can offer those new purchase options in a way that isn't confusing to cusomers and at a price far lower than the legacies, maybe we can get a little market mojo back.

Other than the “business class” option, it’s really just the same Spirit with bundle fares. Still the same 1 random flight option VS the 10 other options on legacy carriers. Who’s flying on Spirt to fly business class anyways. They need to just lower costs and become a niche airline, people still want to fly for cheap.