Spirit Airlines has reported a net loss of just under $1.23 billion for 2024.
According to a 10-K posted by the carrier on Monday, the loss was mainly driven by higher operating expenses compared to the prior year.
These increased operating expenses were partially offset, however, by a decrease in aircraft fuel expense due to a 13% decrease in fuel price per gallon, period over period.
“In addition, the increase in pre-tax loss was driven by higher non-operating expenses, including reorganization expenses and interest expense, year over year, partially offset by an increase in other (income) expense,” Spirit stated in its report.
The ultra-low-cost carrier said that operating revenues also dropped due to a 3.5% decrease in its traffic and a 4.8% decrease in its capacity when compared to 2023.
“Our operating cost structure is a primary area of focus and is at the core of our low-cost business model,” the report continued.
In 2024, Spirit had an operating revenue of nearly $5 billion, an 8.4% decrease from 2023.
Spirit, which recently received court approval to exit bankruptcy, has shed nearly 7,000 workers since 2022. Over 2,000 of those employees were lost in 2024 alone.
During 2024, Spirit added Birmingham, Alabama as its only new destination. The airline grew its fleet of Airbus narrowbody aircraft from 205 to 213 aircraft. Spirit also sold some Airbus A319, A320, and A321 jets.
“As of December 31, 2024, we had 164 leased aircraft, of which 146 aircraft were financed under operating leases and 18 aircraft would have been deemed finance leases resulting in failed sale leaseback transactions,” Spirit stated. “As of December 31, 2024, our aircraft orders from Airbus consisted of 55 A320 family aircraft scheduled for delivery through 2031. In addition, as of December 31, 2024, we had secured financing for 39 aircraft to be leased directly from third-party lessors, scheduled for delivery through 2028.”
Engine Compensation
The filing also revealed $150 million in compensation from aircraft engine builder Pratt & Whitney to Spirit.
Through 2024, Pratty & Whitney agreed to issue Spirit the credits for “aircraft on the ground” days caused by a material malfunction in certain engine parts that required inspection of the PW-1100G-JM Geared Turbofan fleet.
“The temporary removal of engines from service is expected to continue through at least 2026,” Spirit stated. “We are currently discussing arrangements with Pratt & Whitney for any of our aircraft that remain unavailable for operational service after December 31, 2024.”
