Spirit Airlines is still working to keep its planned merger with Jet Blue alive, but CEO Ted Christie says the airline has a path to financial stability in the meantime. Despite financial challenges, Christie stated that demand for air travel is rebounding and that Spirit is focused on cash flow generation and profitability this year.
In the last three months of 2023, Spirit posted a net loss of $183 million, which was an improvement from the $270 million loss in the same period in 2022. Similarly, the annual net loss of $447 million was lower than the $554 million loss for the previous year. However, the airline has not made a profit since 2019. Spirit expects to be cashflow positive from the second quarter onwards.
The merger with Jet Blue was recently blocked by a federal judge, and the two airlines have appealed this ruling. They are due to present arguments in June to the Court of Appeals. In attempts to deal with financial challenges, Spirit plans to sell 25 aircraft and lease them back, generating $419 million. However, the airline also expects to ground an average of 25 Airbus A320neos this year to address problems with Pratt & Whitney engines. Despite these obstacles, Christie remains upbeat about Spirit’s prospects. He emphasized the importance of liquidity and flexibility and stated that