Spirit Airlines reports third quarter 2016 results

For the third quarter 2016, Spirit’s total operating revenue was US$621.3m, an increase of 8.1% compared to the third quarter 2015, driven by a 12.6% increase in flight volume and 0.8 point increase in load factor, partially offset by a decrease in operating yields. Total revenue per available seat mile (TRASM) for the third quarter 2016 decreased 7.0% compared to the same period last year, primarily driven by a decrease in passenger yield as a result of industry competitive pricing pressures. Total GAAP operating expenses, including special items of US$7.8m primarily related to lease termination charges, increased 16.4%, or US$68.5m, year over year to US$486.1m driven by an increase in flight volume. Adjusted operating expense for the third quarter 2016 increased 14.6%, or US$61.0m, to US$478.3m on a capacity increase of 16.2% year over year.