Spirit Airlines has reported fourth quarter and full year 2023 financial results.

Headline figures show total operating revenues  as reported as $1,321.8 million with a net loss of $183.7m

On the face of it, this does not amazing. However, both the CEO and the CFO were keen to point out that the losses had narrowed since the previous reporting period, and that a strategy to increase liquidity in the business, which included the sale and leaseback of 25 aircraft has substantially improved the airline’s position.

READ: Spirit Airlines earnings call details

“Regarding liquidity, we believe our $1.3 billion in total liquidity at year end 2023 should be more than adequate to get us to our primary goal of getting the business to generate cash,” said Scott Haralson, Spirit’s Chief Financial Officer. “This is a milestone we think we will cross as we enter March. We believe we will be operating cash flow positive in the second quarter 2024 and beyond. And, while we have confidence in our ability to return to positive cash generation, we will continue to look at other opportunities to further shore up our liquidity resources as we progress through the year. Also, while Spirit remains focused on consummating the merger with JetBlue and is looking forward to prosecuting the expedited appeal of the U.S. District Court’s order, the Company is aware of its 2025 and 2026 debt maturities and is assessing options to address those maturities when the time is appropriate.”

“As we enter 2024, we are beginning to see benefits from the tactical and strategic changes we implemented in 2023. In addition, current booking trends further our confidence that the domestic environment is beginning to rebound. Together with the changes we have made, we estimate this will result in an unprecedented
sequential improvement in total revenue per available seat mile (TRASM) from fourth quarter 2023 to first quarter 2024, which supports our view of a domestic recovery in 2024,” said Ted Christie, Spirit’s President and Chief Executive Officer.

“The Spirit team is 100% clear and focused on the adjustments we are currently deploying and will continue to make throughout 2024 to drive us back to cash flow generation and profitability,” he concluded.

In January 2024, regulators blocked a proposed merger with JetBlue, a decision that both companies are currently appealing.