the operating loss for October was $96M
it doesn’t seem to be getting any better

 

LOL "buy 5% of the company"...its 350k, you could buy 5% and put out a press release saying spirit should sell itself too

 

They paid about .55 cents a share via OTC which is closer to $700K to $800K - They also have a seat at the table that they used to get an examiner appointed to the case. I would say this is a significant investment. LOL

 

No, they made 20 million when you factor in the AERCAP settlements etc. The bottom line is they may not have drawn from the DIP and they were positive + 20 million in October. This is much different from what you have been telling everyone. They are not liquidating, they are restructuring. November will be interesting.

 

I actually don't think SWA cares about their "Brand" at all anymore. The charge for Bags and are run by pure capitalists.

 

Ha! Let's get 20 "wall at bets" style captains to buy 5% each! We could control 100% of what happens from here!!!

Right? I get that our entire bottom line earnings for October was +$20mil, due entirely from accounting tricks.. but when I think about Frontier, AA, and JB losing money horribly in Q3.. I mean, a bottom line profit is a profit nonetheless.. we're still on track for almost a Billion $ in quarterly revenue.. so.. I still don't get that we don't have a revenue problem, it's the expenses that just aren't in line with our revenues that seems to be our problem.

Just curious what planes they can get their hands on, if ordered new, right now, delivered by 2030? Or you mean order planes by 2030 and just take a 2045+ delivery? Alaska is adding Rome flights and getting their hands on LHR slots now, I hear, they (WN) can afford to sit still and watch Alaska leapfrog them?

 

I haven’t told anyone anything, I barely post. You’re right via sales and other one time tricks the net revenue was positive, but the operating loss was still $90M. It’s good they have more runway and would be even better if they haven’t drawn the DIP. But there won’t be $120M worth of furniture to burn for ever and they’ll need to improve the operating metrics in my untrained opinion

 

I'm taking it one month at a time, and October was positive in that they didn’t burn cash. They ended up +$20 million and may not have needed to draw from the DIP. Their transformation plan projects losses for the foreseeable future, but preventing cash burn during restructuring is critical. Avoiding a DIP draw (assuming they did) is a good sign. Ultimately, I believe the goal of all this is to uplift enterprise value and sell at a premium. Next up is $3 billion in debt reduction and labor concessions.

 

Lets hope so albeit if you look back at the dockets on the ww.dm.eqiq11 they have been spending hundreds of thousands a month across multiple law firms for liquidation analysis

here’s one for example, if you look back at previous dockets you’ll see hundreds of thousands have been spent on liquidation talks.

https://document.epiq11.com/document...=SPJ&source=DM

 

Spirit LOST $96M in October. The GAAP profit of $20M was only because of terminated leases that were accounted for as a non-cash gain. Its accounting for tax purposes, but Spirit didn't "make $20M" nothing like that. According to the financial statement Spirit added $250M in cash. This has to be DIP financing. The earnings statement doesn't show any sales of assets attributable to this much cash being added to the balance sheet.

Spirit drew $250M in cash, but their actual cash burn from the operational losses were $77M, which is slightly better than the $90M.

Spirit has a -38% operating margin. This is not sustainable nor will go away by becoming smaller. Being smaller will only reduce the cash burn so they aren't losing 38% at scale.