Spirit Aviation Holdings, Inc. reported a significant decline in financial performance for the second quarter of 2025, with total operating revenues of $1,019.8 million, down 20.4% from $1,280.9 million in the same period last year. The company experienced a net loss of $245.8 million, compared to a net loss of $192.9 million in the prior year. The decrease in revenue was primarily attributed to a 23.9% reduction in available seat miles (ASMs) and a 3.8 percentage point drop in load factor, although average yield per passenger flight segment increased by 9.6% year-over-year.
In terms of operational metrics, Spirit's average daily aircraft utilization fell by 26.4% to 7.8 hours, and the number of departures decreased by 22.0%. The airline's fleet consisted of 215 Airbus A320-family aircraft as of June 30, 2025, with 88 aircraft scheduled for delivery through 2031. The company has also announced plans to downgrade approximately 140 Captains to First Officers and furlough around 270 pilots in response to projected flight volume reductions for 2026.
Spirit's operating expenses decreased by 16.0% to $1,204.0 million, driven by lower aircraft fuel costs, which fell by 36.0% due to a 25.0% decrease in fuel gallons consumed and a 14.7% reduction in average economic fuel cost per gallon. However, aircraft rent expenses increased by 12.2% as the company financed more aircraft under operating leases. The Adjusted Cost per Available Seat Mile (CASM) ex-fuel rose to 8.77 cents, up from 7.36 cents in the previous year, reflecting increased costs in several areas, including salaries and benefits.
Strategically, Spirit emerged from Chapter 11 bankruptcy on March 12, 2025, following a reorganization plan that included the issuance of $840 million in Exit Secured Notes and the establishment of a $275 million Exit Revolving Credit Facility. The company has implemented various measures to enhance liquidity, including the sale-leaseback of certain aircraft and engines. However, management expressed concerns about ongoing market challenges, including elevated domestic capacity and weak demand for leisure travel, which could impact future performance. The company is actively exploring additional liquidity-enhancing measures, including potential asset sales and cost reductions, to navigate these challenges.
About Spirit Aviation Holdings, Inc.
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