Spirit Now Sure As It Emerges From Bankruptcy
07-20-2025 | 07:41 PM
#601
Line Holder
Joined: Sep 2020
Posts: 1,564
Likes: 345
Overall Assessment
• Inaccurate: The dismissal of losses (Spirit has both losses and negative cash flow), the claim that debt-to-equity makes debt “harder to clear” in a buyout, and the reason for rejecting Frontier’s offer (not about a $2.1 billion valuation) are incorrect.
• Speculative: The “clean slate financial reporting system” is a loose interpretation of fresh start accounting (partially accurate). The $800 per flight loss and $500 million Q1 cash burn are unverified but plausible given Spirit’s financials.
Key Takeaways
• Spirit’s Q1 2025 financials show a $142.6 million net loss, with a $10.9 million loss in the Successor period, reflecting ongoing unprofitability despite restructuring.
• The debt-to-equity conversion and liquidity measures (e.g., aircraft deferrals, financing) have improved Spirit’s balance sheet, but operational challenges and a competitive environment threaten sustainability.
• The post overstates or misinterprets some aspects (e.g., Frontier offer, debt in buyouts) and relies on unverified figures.
• Inaccurate: The dismissal of losses (Spirit has both losses and negative cash flow), the claim that debt-to-equity makes debt “harder to clear” in a buyout, and the reason for rejecting Frontier’s offer (not about a $2.1 billion valuation) are incorrect.
• Speculative: The “clean slate financial reporting system” is a loose interpretation of fresh start accounting (partially accurate). The $800 per flight loss and $500 million Q1 cash burn are unverified but plausible given Spirit’s financials.
Key Takeaways
• Spirit’s Q1 2025 financials show a $142.6 million net loss, with a $10.9 million loss in the Successor period, reflecting ongoing unprofitability despite restructuring.
• The debt-to-equity conversion and liquidity measures (e.g., aircraft deferrals, financing) have improved Spirit’s balance sheet, but operational challenges and a competitive environment threaten sustainability.
• The post overstates or misinterprets some aspects (e.g., Frontier offer, debt in buyouts) and relies on unverified figures.
Clean slate and fresh start basically mean the same thing.
The figures I am quoting are from this thread. I never said they were verified. I just said that if Spirit is not making positive cash flow now its going to be very challenging this winter.
Also the $142M net loss is actually much more. Because Spirit wiped out debt in the BK there is a non cash gain it took. Economically Spirit lost much more than $142M in the quarter. Its literally explained in the 10Q that Spirit filed.
Maybe you should have chatgpt look at the 10Q and explain the imputed cancellation of debt income and where did all the cash go?
Chatgpt is far behind on anything that requires current information. Good luck!
07-20-2025 | 09:31 PM
#602
Line Holder
Joined: Sep 2017
Posts: 1,169
Likes: 164
From: NK CA
CODI: The 10-Q (Pages 12, 42) confirms a $421.4 million reorganization gain (per Simple Flying), including CODI from equitizing $795 million in debt, reducing the reported $143 million net loss from an economic loss of ~$360 million, as detailed in Note 7 and reorganization expense sections.
• Cash Flow: The 10-Q (Page 53) shows $329.7 million in cash used by operating activities ($223.7 million Predecessor, $106 million Successor), driven by:
• Operating expenses (~$259 million in Successor period, including fuel, labor, aircraft rent).
• Interest (~$9.1 million in Successor period).
• Restructuring fees ($6.9 million prepetition, $8.2 million professional, $2.6 million success fees).
• Asset disposal losses ($11.7 million).
• Working capital payments. The $350 million equity infusion and $840 million Exit Secured Notes provided inflows, but operating losses consumed significant cash.
07-21-2025 | 09:04 AM
#603
Banned
Joined: Dec 2014
Posts: 718
Likes: 9
I think the best case scenario is 180 furloughs, 90 downgrades, and shrinking all the bases.
i think the worst case is tripple that, and 3 or 4 bases fully close.
07-21-2025 | 09:05 AM
#604
Banned
Joined: Dec 2014
Posts: 718
Likes: 9
Actually Grok
CODI: The 10-Q (Pages 12, 42) confirms a $421.4 million reorganization gain (per Simple Flying), including CODI from equitizing $795 million in debt, reducing the reported $143 million net loss from an economic loss of ~$360 million, as detailed in Note 7 and reorganization expense sections.
• Cash Flow: The 10-Q (Page 53) shows $329.7 million in cash used by operating activities ($223.7 million Predecessor, $106 million Successor), driven by:
• Operating expenses (~$259 million in Successor period, including fuel, labor, aircraft rent).
• Interest (~$9.1 million in Successor period).
• Restructuring fees ($6.9 million prepetition, $8.2 million professional, $2.6 million success fees).
• Asset disposal losses ($11.7 million).
• Working capital payments. The $350 million equity infusion and $840 million Exit Secured Notes provided inflows, but operating losses consumed significant cash.
CODI: The 10-Q (Pages 12, 42) confirms a $421.4 million reorganization gain (per Simple Flying), including CODI from equitizing $795 million in debt, reducing the reported $143 million net loss from an economic loss of ~$360 million, as detailed in Note 7 and reorganization expense sections.
• Cash Flow: The 10-Q (Page 53) shows $329.7 million in cash used by operating activities ($223.7 million Predecessor, $106 million Successor), driven by:
• Operating expenses (~$259 million in Successor period, including fuel, labor, aircraft rent).
• Interest (~$9.1 million in Successor period).
• Restructuring fees ($6.9 million prepetition, $8.2 million professional, $2.6 million success fees).
• Asset disposal losses ($11.7 million).
• Working capital payments. The $350 million equity infusion and $840 million Exit Secured Notes provided inflows, but operating losses consumed significant cash.
07-21-2025 | 09:11 AM
#605
Banned
Joined: Dec 2022
Posts: 88
Likes: 3
Actually Grok
CODI: The 10-Q (Pages 12, 42) confirms a $421.4 million reorganization gain (per Simple Flying), including CODI from equitizing $795 million in debt, reducing the reported $143 million net loss from an economic loss of ~$360 million, as detailed in Note 7 and reorganization expense sections.
• Cash Flow: The 10-Q (Page 53) shows $329.7 million in cash used by operating activities ($223.7 million Predecessor, $106 million Successor), driven by:
• Operating expenses (~$259 million in Successor period, including fuel, labor, aircraft rent).
• Interest (~$9.1 million in Successor period).
• Restructuring fees ($6.9 million prepetition, $8.2 million professional, $2.6 million success fees).
• Asset disposal losses ($11.7 million).
• Working capital payments. The $350 million equity infusion and $840 million Exit Secured Notes provided inflows, but operating losses consumed significant cash.
CODI: The 10-Q (Pages 12, 42) confirms a $421.4 million reorganization gain (per Simple Flying), including CODI from equitizing $795 million in debt, reducing the reported $143 million net loss from an economic loss of ~$360 million, as detailed in Note 7 and reorganization expense sections.
• Cash Flow: The 10-Q (Page 53) shows $329.7 million in cash used by operating activities ($223.7 million Predecessor, $106 million Successor), driven by:
• Operating expenses (~$259 million in Successor period, including fuel, labor, aircraft rent).
• Interest (~$9.1 million in Successor period).
• Restructuring fees ($6.9 million prepetition, $8.2 million professional, $2.6 million success fees).
• Asset disposal losses ($11.7 million).
• Working capital payments. The $350 million equity infusion and $840 million Exit Secured Notes provided inflows, but operating losses consumed significant cash.
There are no new interiors that can save Spirit from its own reputation it built over the past decade, one delay, cancellation, Irop, and police intervention at a time.
At best, you merge with Frontier. An airline that currently pays its 12 year Captains 4th Year Legacy First Officer wages. You then will get to watch one ALPA group vote away the other ALPA groups work rules just to be brought up to the same pay.
At worst, Spirit ceases operations this fall when it runs out of cash and sources for additional funding. You now will get to apply with the other 2,000 pilots that decided to ride this thing into the side of the mountain.
But carry on good sir! I’m sure you are convinced that the airline which hasn’t made a dime in 5 years, a turn around is just around the corner.
07-21-2025 | 09:14 AM
#606
Gets Weekends Off
Joined: Jan 2018
Posts: 2,823
Likes: 225
All is well then. No better time to be a Spirit Pilot. Definitely no reason to go to a Legacy like Delta that is printing money hand over fist. Why not stay and enjoy watching your airline die of financial cancer.
There are no new interiors that can save Spirit from its own reputation it built over the past decade, one delay, cancellation, Irop, and police intervention at a time.
At best, you merge with Frontier. An airline that currently pays its 12 year Captains 4th Year Legacy First Officer wages. You then will get to watch one ALPA group vote away the other ALPA groups work rules just to be brought up to the same pay.
At worst, Spirit ceases operations this fall when it runs out of cash and sources for additional funding. You now will get to apply with the other 2,000 pilots that decided to ride this thing into the side of the mountain.
But carry on good sir! I’m sure you are convinced that the airline which hasn’t made a dime in 5 years, a turn around is just around the corner.
There are no new interiors that can save Spirit from its own reputation it built over the past decade, one delay, cancellation, Irop, and police intervention at a time.
At best, you merge with Frontier. An airline that currently pays its 12 year Captains 4th Year Legacy First Officer wages. You then will get to watch one ALPA group vote away the other ALPA groups work rules just to be brought up to the same pay.
At worst, Spirit ceases operations this fall when it runs out of cash and sources for additional funding. You now will get to apply with the other 2,000 pilots that decided to ride this thing into the side of the mountain.
But carry on good sir! I’m sure you are convinced that the airline which hasn’t made a dime in 5 years, a turn around is just around the corner.
Wow, I had no idea Frontier was that behind on pay.
07-21-2025 | 09:27 AM
#607
Banned
Joined: Dec 2014
Posts: 718
Likes: 9
All is well then. No better time to be a Spirit Pilot. Definitely no reason to go to a Legacy like Delta that is printing money hand over fist. Why not stay and enjoy watching your airline die of financial cancer.
There are no new interiors that can save Spirit from its own reputation it built over the past decade, one delay, cancellation, Irop, and police intervention at a time.
At best, you merge with Frontier. An airline that currently pays its 12 year Captains 4th Year Legacy First Officer wages. You then will get to watch one ALPA group vote away the other ALPA groups work rules just to be brought up to the same pay.
At worst, Spirit ceases operations this fall when it runs out of cash and sources for additional funding. You now will get to apply with the other 2,000 pilots that decided to ride this thing into the side of the mountain.
But carry on good sir! I’m sure you are convinced that the airline which hasn’t made a dime in 5 years, a turn around is just around the corner.
There are no new interiors that can save Spirit from its own reputation it built over the past decade, one delay, cancellation, Irop, and police intervention at a time.
At best, you merge with Frontier. An airline that currently pays its 12 year Captains 4th Year Legacy First Officer wages. You then will get to watch one ALPA group vote away the other ALPA groups work rules just to be brought up to the same pay.
At worst, Spirit ceases operations this fall when it runs out of cash and sources for additional funding. You now will get to apply with the other 2,000 pilots that decided to ride this thing into the side of the mountain.
But carry on good sir! I’m sure you are convinced that the airline which hasn’t made a dime in 5 years, a turn around is just around the corner.
07-21-2025 | 10:11 AM
#609
Almost there
Joined: Apr 2021
Posts: 1,971
Likes: 113
Also I think Allegiant actually is. Not sure. Don’t care.
07-21-2025 | 10:24 AM
#610
On Reserve
Joined: Feb 2015
Posts: 98
Likes: 8
From the earlier link to pay tables in this thread this is true comparing F9 12 yr CA to UAL 3-4 yr WB FO. So it’s somewhat of a stretch to compare anyways because F9 will never see that FO rate and isn’t negotiating for it cause there are no WB airframes. But it doesn’t matter anyways. Anyone didn’t leave ULCCs during the post COVID hiring boom had their reasons and of course F9 pilots are working on an expired contract.
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