DANIA
BEACH, Fla., Nov. 12,
2024 /PRNewswire/ -- Spirit Airlines, Inc. ("Spirit"
or the "Company") (NYSE: SAVE) today announced that it had filed a
Form 12b-25 with the Securities and Exchange Commission that is
expected to be available on the SEC's EDGAR filing system on
Wednesday, November 13, 2024, prior
to the opening of the market session. That form will contain the
following disclosure:
The Company is unable to file its Quarterly Report on Form 10-Q
for the quarter ended September 30,
2024 (the "Q3 2024 Form 10-Q") by the prescribed due date
without unreasonable effort or expense. As previously disclosed,
the Company has been in active and constructive discussions with
holders of its senior secured notes due 2025 and convertible senior
notes due 2026 (collectively, the "Noteholders") with respect to
restructuring the obligations owed by the Company to the
Noteholders, as well as exploring strategic alternatives and other
ways to improve liquidity for the Company. The negotiations, with a
supermajority of the Noteholders, have remained productive, have
advanced materially and are continuing in the near term, but have
also diverted significant management time and internal resources
from the Company's processes for reviewing and completing its
financial statements and related disclosures. If a definitive
agreement with such Noteholders is reached and documented, it would
be effectuated 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, but, if effectuated, 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 Company estimates its third quarter 2024 operating margin
and adjusted operating margin will each be approximately 12
percentage points lower than the operating margin and adjusted
operating margin reported for the third quarter 2023 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. 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. Total operating expenses and adjusted
operating expenses are estimated to be higher year over year
primarily due to an increase in aircraft rent expense, other
operating expense, salaries, wages and benefits, and landing fees
and other rents expense. These increases were partially offset by a
decrease in aircraft fuel expense.
About Spirit Airlines
Spirit Airlines (NYSE: SAVE) is a leading low-fare carrier
committed to delivering the best value in the sky by offering an
enhanced travel experience with flexible, affordable options.
Spirit serves destinations throughout the
United States, Latin
America and the Caribbean
with its Fit Fleet®, one of the youngest and most fuel-efficient
fleets in the U.S. Spirit is committed to inspiring positive change
in the communities it serves through the Spirit Charitable
Foundation. Discover elevated travel options with exceptional value
at spirit.com.
Investor inquiries:
Spirit Investor Relations
investorrelations@spirit.com
Media inquiries:
Spirit Media Relations
Media_Relations@spirit.com
Cautionary Statement Regarding Forward Looking
Statements
This press release contains various forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended (the "Securities Act"), and Section 21E of the Securities
Exchange Act of 1934, as amended (the "Exchange Act") which are
subject to the "safe harbor" created by those sections.
Forward-looking statements are based on our management's beliefs
and assumptions and on information currently available to our
management. All statements other than statements of historical
facts are "forward-looking statements" for purposes of these
provisions. In some cases, you can identify forward-looking
statements by terms such as "may," "will," "should," "could,"
"would," "expect," "plan," "anticipate," "believe," "estimate,"
"project," "predict," "potential," and similar expressions intended
to identify forward-looking statements. Forward-looking statements
include, without limitation, the status of the Company's
negotiations with the Noteholders and the possibility that the
Company may voluntarily initiate a statutory restructuring process
and the potential effects of the initiation of such statutory
restructuring process on the Company's liquidity, results of
operations and business. Forward-looking statements are subject to
risks, uncertainties and other important factors that could cause
actual results and the timing of certain events to differ
materially from future results expressed or implied by such
forward-looking statements. Factors include, among others, the
Company's ability to reach an agreement with the Noteholders,
results of operations and financial condition, the competitive
environment in our industry, our ability to keep costs low and the
impact of worldwide economic conditions, including the impact of
economic cycles or downturns on customer travel behavior and other
factors, as described in the Company's filings with the Securities
and Exchange Commission, including the detailed factors discussed
under the heading "Risk Factors" in the Company's Annual Report on
Form 10-K for the fiscal year ended December
31, 2023, as supplemented in the Company's Quarterly Report
on Form 10-Q for the fiscal quarters ended March 31, 2024 and June
30, 2024. Furthermore, such forward-looking statements speak
only as of the date of this release. Except as required by law, we
undertake no obligation to update any forward-looking statements to
reflect events or circumstances after the date of such statements.
Risks or uncertainties (i) that are not currently known to us, (ii)
that we currently deem to be immaterial, or (iii) that could apply
to any company, could also materially adversely affect our
business, financial condition, or future results. Additional
information concerning certain factors is contained in the
Company's Securities and Exchange Commission filings, including but
not limited to the Company's Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q, and Current Reports on Form 8-K.
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SOURCE Spirit Airlines, Inc.
