Spirit Won’t Report Q3 Earnings as Stock Nosedives

Spirit announced that it filed a disclosure with the Securities and Exchange Commission stating the carrier is unable to file its Q3 earnings.

AirlineGeeks.com Staff

Wednesday, November 13, 2024 at 04:30 PM ET

Verified

Edited By:

Ryan Ewing

A Spirit A320 in New York. (Photo: AirlineGeeks | William Derrickson)

Spirit Airlines announced that it filed a disclosure with the Securities and Exchange Commission stating the carrier is unable to file its Q3 report as the company continues talks with creditors to explore ways of improving liquidity.

In a Form 12b-25 filed with the SEC, Spirit stated that the company is unable to file a quarterly earnings report by its due date without “unreasonable effort or expense.”

The announcement comes as bankruptcy looms over the low-cost carrier after its potential merger with Frontier broke down Tuesday. Spirit’s stock took a massive hit falling by 59.3% at market close on Wednesday following the news.

Spirit has been in active discussions with holders of its senior secured notes due 2025 and convertible senior notes due 2026. The carrier stated that negotiations with most of these noteholders have remained productive and are moving forward in the near term, though they have diverted “significant management time and internal resources from the company’s processes for reviewing and completing its financial statements and related disclosures.”

The airline stated that if an agreement with its noteholders is reached, it would be done so through a “statutory restructuring” that is not expected to impair general unsecured creditors, employees, customers, vendors, suppliers, aircraft lessors, or holders of secured aircraft indebtedness.

However, if put into force, an agreement “is expected to lead to the cancellation of the company’s existing equity.”

“If a definitive agreement with the Noteholders is not reached, the Company will consider all alternatives,” the airline stated.

Lower Margins

In the filing, Spirit estimates its Q3 2024 operating margin and adjusted operating margin will be approximately 12% lower than the same period last year. The carrier stated this is due to lower total operating revenues and higher total operating expenses.

“Total operating revenues are estimated to have decreased approximately $61 million compared to the third quarter 2023 primarily due to lower average yields, including the negative impact from the Company no longer charging for change and cancellation fees,” Spirit stated. “Total operating expenses are estimated to have increased approximately $46 million and adjusted operating expenses are estimated to have increased approximately $52 million compared to the third quarter 2023.”

Additionally, total operating expenses and adjusted operating expenses are estimated to be higher year over year mainly due to an increase in aircraft rent expenses, other operating expenses, salaries, wages and benefits, landing fees, and other rent expenses, the carrier said.

AirlineGeeks.com Staff

AirlineGeeks.com was founded in February 2013 as a one-person blog in Washington D.C. Since then, we’ve grown to have 25+ active team members scattered across the globe. We are all here for the same reason: we love deep-diving into the fascinating realm of the airline industry.

China’s COMAC Rebrands ARJ21

The Commercial Aircraft Corporation of China (COMAC), has announced that its ARJ21 will rebrand as the C909, in line with other models.

Pete Ainsley

Wednesday, November 13, 2024 at 10:57 AM ET

Verified

Edited By:

Ryan Ewing

The Comac C909, formerly known as the ARJ21. (Photo: COMAC)

The Commercial Aircraft Corporation of China (COMAC), has announced that its ARJ21 will rebrand as the C909. It comes after the announcement of the acquisition of 60 ARJ21s by Urumqi Air and Colorful Guizhou Airlines. After rebranding the regional jet, COMAC will be producing three different passenger aircraft: the C909, C919 and C929.

“After careful consideration, a long gestation and asking opinions of many involved parties, we chose to use C909 as a new commercial name to build the brand.” Xiaoguang Zhang, marketing director of the manufacturer, told Reuters.

The rebranding is believed to compete with Airbus and Boeing in the future, but the Chinese aircraft manufacturer is waiting for a green light to operate in the U.S. and Europe. The FAA and the European Aviation Safety Agency (EASA) have no signs of approving the C909 and C919 to operate yet.

The C909 has cut its flying costs as a result of reducing its weight, resistance, and noise. COMAC told Reuters at the Zhuhai Air Show.

Hainan Airlines, the parent company of Urumqi Air, said 40 C909s are slated to be delivered between 2025 and 2032. In the meantime, Colorful Guizhou Airlines has confirmed an order of 20 C909s with the rights to purchase 10 additional aircraft in the future. COMAC also confirmed that Hainan Airlines had placed an order for 60 COMAC C919s.

Air China Becomes First Customer of C929

Meanwhile, the aircraft manufacturer revealed that Air China could be the first airline to acquire the C929 widebody jet. However, C929 is not going to happen any time soon. Earlier, the manufacturer said the first fuselage section could be delivered by September 2027.

C929 could carry 280 to 400 passengers with a range of 12,000 km, which is considered in the same category as Boeing’s 787 Dreamliner.

Pete Ainsley

Avianca Owner ‘Interested’ in Aerolineas Argentinas

Javier Milei’s government – which owns the carrier – has threatened to shut down the ailing airline should labor talks break down even further.

Ryan Ewing

Wednesday, November 13, 2024 at 10:04 AM ET

Verified

Edited By:

Ryan Ewing

An Aerolineas Argentinas Airbus A330 (Photo: Shutterstock | Soos Jozsef)

Aerolineas Argentinas’ ongoing financial and operational woes may soon reach a tipping point. Javier Milei’s government – which owns the carrier – has threatened to shut down the ailing airline should labor talks break down even further.

According to some local reports, the government has given an ultimatum of Friday afternoon to resolve the labor disputes, which have crippled the airline’s operations.

Since Milei took office last year, the government has been desperate to pawn off the state-run airline. Aerolineas Argentinas has not made a profit for 16 years.

Next Steps

Earlier this week, reports surfaced that both Avianca and Delta were part of a consortium to buy the airline. However, Delta has since denied the reports.

“Delta Air Lines has not made any offer to acquire Aerolíneas Argentinas. Reports suggesting otherwise are unfounded,” a Delta spokesperson told Los Andes.

However, Avianca and its parent company, Abra Group, have expressed some interest in the airline. During Skift’s recent Aviation Forum in Dallas, Abra Group’s commercial chief, Joe Mohan, said the company is “interested in Aerolineas Argentinas.”

An Avianca 787 preparing for its first flight at Paine Field.
(Photo: AirlineGeeks | Katie Zera)

But Mohan noted some concern over “what exactly Aerolineas represents at this point.” With Argentina adopting a full open skies policy, the already struggling airline may face even more competition.

“So Aerolineas Argentinas has been bought and sold many times over a few decades,” Mohan stated. “In fact, I did due diligence on that [at] one of my first jobs at Continental Airlines 25 years ago.”

“What is there to sell? We don’t really know,” he continued.

Mohan stated that Abra is in “due diligence” to determine the next steps over a potential deal, but he didn’t provide further details on timing.

Ryan Ewing

Ryan founded AirlineGeeks.com in February 2013 and has spent more than a decade covering the airline business. His work has been featured by CNN, WJLA, CNET, and Business Insider. His aviation experience spans airport operations, Part 135 regulatory compliance, and airline crew workforce planning, along with time behind the yoke of a Cessna 172 and interviews with airline executives. Ryan now serves as Group President of Firecrown Media’s Aviation Group. He holds a B.S. in Air Transportation Management and an MBA from Arizona State University and teaches Airline Management at Embry-Riddle Aeronautical University.

Allegiant Not Ruling Out International Flights

The airline’s commercial chief, Drew Wells, gave an “unequivocally yes” response when asked about international expansion on Tuesday.

Ryan Ewing

Wednesday, November 13, 2024 at 12:02 AM ET

Verified

Edited By:

Ryan Ewing

An Allegiant A319 in Pittsburgh. (Photo: AirlineGeeks | William Derrickson)

Allegiant may soon fly internationally. Currently, the ultra-low-cost carrier exclusively operates within the continental U.S.

The airline’s commercial chief, Drew Wells, gave an “unequivocally yes” response when asked about international expansion on Tuesday, noting its pending joint venture with Mexico’s Viva Aerobus. In the past, Allegiant has operated some charter flights to destinations such as Cancun and Punta Cana.

“It’s just such a natural extension of the Allegiant route map and what we do so well of finding un[served] and underserved opportunities to some of the best leisure destinations currently in the U.S.,” Wells said during Skift’s Aviation Forum in Dallas. “But extending that to Mexico and potentially eventually the Caribbean, I think makes a lot of sense.”

Up until 2020, the airline served some longer overwater routes, albeit not international. These included San Juan, Puerto Rico, and a stint in the Hawaiian market.

“It’s really core to who we are as an airline and what our customers want,” Wells continued.

Last month, Allegiant took delivery of its first Boeing 737 MAX aircraft, which will initially be based in Florida. With the new jet, Wells said the airline expects to reduce operating costs by about 20% per flight.

Ryan Ewing

Spirit Merger Talks Fall Through, Bankruptcy Looms

Spirit is in advanced talks with bondholders over a potential bankruptcy filing, a Wall Street Journal report said on Tuesday.

Ryan Ewing

Tuesday, November 12, 2024 at 06:12 PM ET

Verified

Edited By:

Ryan Ewing

Spirit Airbus jets. (Photo: AirlineGeeks | William Derrickson)

Spirit Airlines is in advanced talks with bondholders over a potential bankruptcy filing, a Wall Street Journal report said on Tuesday. Merger talks between the financially ailing ultra-low-cost carrier and Frontier halted.

The airline – which has posted quarterly losses for several years – sold over 20 aircraft last month in a deal to raise cash. Spirit has also reduced capacity on a year-over-year basis.

Next year, the carrier is slated to furlough hundreds of pilots and downgrade several more captains. Spirit has yet to report its third-quarter earnings, but noted that more losses are expected. In the second-quarter, the carrier reported a net loss of $158 million.

According to the report, Spirit is planning a bankruptcy filing “within weeks.”

Ryan Ewing

American Jet Hit by Gunfire, FAA Halts U.S.-Haiti Flights

The Federal Aviation Administration issued a notice on Tuesday prohibiting all flights by U.S. carriers to Haiti for 30 days.

Ryan Ewing

Tuesday, November 12, 2024 at 05:09 PM ET

Verified

Edited By:

Ryan Ewing

An American Airlines Boeing 737 MAX 8. (Photo: Shutterstock | Wenjie Zheng)

The Federal Aviation Administration issued a notice on Tuesday prohibiting all flights by U.S. carriers to Haiti for 30 days.

The Notice to Air Missions (NOTAM) stated that flights are not allowed within 10,000 feet of the territory and airspace of Haiti due to “safety-of-flight risks associated with ongoing security instability.”

The decision to block all U.S. flights to the country comes after gunfire recently struck three separate flights traveling to the country on Monday. JetBlue flight 634 from Port-au-Prince, Haiti, to New York-JFK was struck by a bullet, though crew reported no issues during its flight.

Spirit flight 951 was struck by several bullets while attempting to land in Port-au-Prince and diverted to Santiago, Dominican Republic, where it landed safely. A spokesperson for Spirit reported that one flight attendant was injured in this incident.

American Aircraft Fired Upon

An American Airlines flight was also found to be struck by a bullet during a post-flight inspection following its trip to Port-au-Prince on Monday, according to airline watchdog JonNYC on Twitter/X. The airline only serves the country from its Miami hub, recently resuming flights in May.

All three airlines have suspended service to Haiti following these incidents.

“This morning, APA was notified that a post-flight inspection revealed the presence of a bullet hole in an American Airlines aircraft following a trip to Port-au-Prince, Haiti yesterday,” the Allied Pilots Association (APA) – which represents American’s pilots – said in an internal memo.

The union said it is in contact with American regarding the incident and has also reached out to the flight crew to ensure they receive support and assistance.

“APA will remain in close contact with the company about the situation in Haiti, and we will be involved in any decisions by American Airlines and the FAA regarding the resumption of service,” the APA memo stated. “Ensuring the safety and security of our crews and passengers will always be our highest priority. We will update you as developments warrant and appreciate your professionalism and vigilance.”

In a statement, a spokesperson from the airline confirmed the incident, adding that no injuries were reported.

“On Monday, Nov. 11, American Airlines flight 819 from Toussaint Louverture International Airport (PAP) to Miami International Airport (MIA) landed safely and uneventfully in Miami. Out of an abundance of caution, a post-flight inspection was completed, indicating the exterior of the aircraft had been impacted by a bullet. We are working closely with all relevant authorities to investigate this incident,” the spokesperson said.

The carrier’s daily service between Miami and Port-au-Prince is suspended through Feb. 12.

Ryan Ewing

Boeing Delivered Just 14 Jets in October

Boeing delivered just 14 commercial aircraft in October following costly strikes by IAM union members throughout the month.

AirlineGeeks.com Staff

Tuesday, November 12, 2024 at 03:20 PM ET

Verified

Edited By:

Ryan Ewing

The 787 assembly line in Everett. (Photo: AirlineGeeks | Ryan Ewing)

Boeing reportedly delivered just 14 commercial jets in October following costly strikes by International Association of Machinists and Aerospace Workers (IAM) union members throughout the month.

According to an article by The Seattle Times, 10 of those jets were delivered in Washington state for the month, while four additional 787 deliveries were made from its nonunion South Carolina assembly plant.

The 10 deliveries in Washington consisted of nine 737 MAXs and one 767 cargo airplane, and were delivered by managers and others not on strike, according to the report. This information comes as Boeing slowly begins to ramp up production again on its commercial aircraft following strike stagnation.

737 aircraft at Boeing’s Renton facility (Photo: Shutterstock | Thiago B Trevisan)

Boeing competitor Airbus delivered 62 commercial jets last month.

Quality Head to Retire

Elizabeth Lund, senior vice president of quality control at Boeing Commercial Airplanes, announced plans to retire next month, according to an internal memo cited by another Seattle Times report.

Lund was responsible for restoring Boeing’s quality control after January’s Alaska 1282 incident.

In the message to employees written by Stephanie Pope, CEO of Boeing Commercial Airplanes, Pope stated that Lund planned to retire after more than 33 years at Boeing. Pope thanked her for her leadership during a challenging year for the company.

“Boeing has been a part of my life for more than 30 years,” Lund stated in the memo. “A piece of my heart will always be with this company. … I will always root for you.”

AirlineGeeks reached out to Boeing for comment.

AirlineGeeks.com Staff

Delta Plans More Service to Alaska

Service to the state of Alaska, and especially Anchorage, has been increasing exponentially over the past several years.

Joey Gerardi

Tuesday, November 12, 2024 at 01:14 PM ET

Verified

Edited By:

Ryan Ewing

A Delta 767-300. (Photo: AirlineGeeks | William Derrickson)

Last week, Delta announced the resumption of its Salt Lake City to Fairbanks, Alaska route next summer. The carrier has also decided to increase service for the coming tourist season in the state.

The airline recently resumed the Detroit to Anchorage route, which came back this past summer after a multi-year hiatus, and is going from three times a week to daily service, Ishrion Aviation reported.

In addition, the route from the airline’s largest hub in Atlanta to Anchorage will see more seats. For many years, the route was flown by the Boeing 767-300, but has more recently operated on the Boeing 757-200. The carrier resumes the route at the beginning of June 2025, but starting June 22, it will be upgrading the aircraft back to the Boeing 767–300.

Service to the state of Alaska, and especially Anchorage, has been increasing exponentially over the past few years with the state now being connected to most of the major airline hubs in the lower 48 during the summer season.

Joey Gerardi

Joey has always been interested in planes for as long as he can remember. He grew up in Central New York during the early 2000s when US Airways Express turboprops ruled the skies. Being from a non-aviation family made it harder for him to be around planes and would only spend about three hours a month at the airport. He was so excited when he could drive by himself, the first thing he did with his driver's license was get ice cream and go plane spotting for the entire day. He graduated from Western Michigan University in 2022 with a B.S. in Aviation Management & Operations and a Minor in Business, and currently works for a major airline in his hometown.

American CEO: ‘It’s Never Been Harder to Operate an Airline’

American Airlines CEO Robert Isom believes the commercial aviation industry is facing some of its biggest challenges to date.

Ryan Ewing

Tuesday, November 12, 2024 at 11:37 AM ET

Verified

Edited By:

Ryan Ewing

An American Airlines Airbus A319. (Photo: AirlineGeeks | William Derrickson)

American Airlines CEO Robert Isom believes the airline industry is facing some of its biggest challenges to date. During Skift’s Aviation Forum on Tuesday, the airline chief said, “It’s never been harder to operate an airline,” citing a plethora of issues.

Isom said new variables have prompted his airline to build additional buffers into its systems. He said air traffic control challenges and supply chain woes are among the biggest issues.

“And so, whether it’s air traffic control … that’s very different,” Isom said. “That to fly from Chicago to New York, it’s 30 minutes longer than it was 20 years ago.”

During the forum, he mentioned ongoing delivery and supply chain constraints at aircraft manufacturers and engine makers. Last week, Boeing resolved a seven-week strike with its 33,000 machinists. The labor action effectively halted production of some aircraft types, including the 737.

“The supply chain … the airframers or the engine manufacturers, but the whole supply chain really hasn’t come back to where it was in 2019,” he continued.

Even with continued aircraft delays, Isom noted that American isn’t “that dependent over the next couple of years” on Boeing, even with 787s and 737 MAXs on order. In March, the Fort Worth, Texas-based airline placed an order for 85 737 MAX 10s, which have yet to be certified by the Federal Aviation Administration.

A rendering of an American Boeing 737 MAX 10 aircraft (Photo: Boeing)

“And all of that creates difficulty [and] uncertainty for the operators and at least for American, I’m so proud of our team,” he concluded.

Ryan Ewing

KLM Adds New U.S. Route

The carrier will boost its presence on the U.S. West Coast, joining existing service to Portland, San Francisco, and Los Angeles.

Ryan Ewing

Tuesday, November 12, 2024 at 10:27 AM ET

Verified

Edited By:

Ryan Ewing

KLM Boeing 787 aircraft (Photo: KLM | Patrick Kop)

KLM Royal Dutch Airlines plans to add its 22nd North American destination in May 2025. The carrier will boost its presence on the U.S. West Coast, joining existing service to Portland, San Francisco, and Los Angeles.

Beginning on May 8, 2025, the airline will add San Diego to its route map. The new flights will operate three times per week on Tuesdays, Thursdays, and Sundays with a Boeing 787-9 Dreamliner aircraft.

The European airline will become San Diego’s seventh international airline. Flights will operate year-round, the airport said in a Tuesday news release.

“We are very pleased to have KLM join as the 19th carrier at SAN,” said Kimberly Becker, CEO and President of San Diego County Regional Airport Authority, in the release. “This summer, European travel is up over 30 percent compared to last year. Amsterdam, with its iconic canals and world-class museums and corporate ties to the San Diego region, will be the 10th international destination offered from SAN and we look forward to a continued demand from both business and leisure international travelers.”

KL639 departs Amsterdam Schiphol Airport at 9:50 a.m. and arrives in San Diego at noon local time. KL640 departs from San Diego at 1:55 p.m. local time, arriving in Amsterdam at 9:15 a.m. the following day.

In addition to San Diego, KLM is also adding flights to Georgetown, Guyana, with an outbound stop in Sint Maarten next year. Furthermore, KLM will fly between Hyderabad, India, and Amsterdam starting in September 2025.

Ryan Ewing