Stock Monitor: China Eastern Airlines Post Earnings Reporting

LONDON, UK / ACCESSWIRE / May 22, 2018 / If you want access to our free earnings report on Spirit Airlines, Inc. (NYSE: SAVE) ("Spirit"), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=SAVE. The Company reported its first quarter fiscal 2018 operating and financial results on April 26, 2018. The airline surpassed earnings expectations. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for China Eastern Airlines Corporation Limited (NYSE: CEA), which also belongs to the Services sector as the Company Spirit Airlines. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Spirit Airlines most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=SAVE

Earnings Highlights and Summary

For the first quarter of the fiscal year 2018, Spirit's total operating revenues were $704.1 million, reflecting an increase of 19.4% compared to $590.0 million in Q1 2017, driven by a growth in flight volume of 14.4%. The Company's revenue numbers lagged analysts' estimates of $705 million.

During Q1 2018, Spirit's total revenue per available seat mile (TRASM) dropped 2.4% on a y-o-y basis, primarily driven by a decline in operating yields of 1.7% and an increase in average stage length of 4.1%. For the reported quarter, the Company's results benefited from the calendar shift of Easter by approximately 200 basis points.

On a per passenger flight segment basis, Spirit's total revenues rose 1.7% to $107.71 on a y-o-y basis in Q1 2018, driven by non-ticket revenue per passenger flight segment increasing 5.9% to $55.292, partially offset by fare revenue per passenger flight segment falling 2.4% to $52.42.

For Q1 2018, Spirit reported a GAAP net loss of $44.9 million, or $0.66 loss per diluted share, compared to a net income of $31.3 million, or $0.45 per diluted share, in Q1 2017. Excluding special items, the Company's net income was $29.9 million, or $0.44 per diluted share, in the reported quarter compared to $34.9 million, or $0.50 per diluted share, in the last year's same quarter. Spirit's earnings beat Wall Street's estimates of $0.43 per share.

During Q1 2018, Spirit's GAAP operating margin was negative 5.5%. Excluding special items, the Company's operating margin was 7.3% in the reported quarter versus 10.9% in the year-earlier comparable quarter.

Cost Performance

For Q1 2018, Spirit's total GAAP operating expenses, including special items of $90.0 million, increased 39.8% to $742.9 million on a y-o-y basis. The y-o-y increase in GAAP operating expenses was primarily driven by special charges in connection with the new pilot agreement approved in February 2018; increased flight volumes; and higher fuel rates.

Spirit's adjusted operating expenses increased 24.2% to $652.9 million on a y-o-y basis in Q1 2018. The y-o-y increase in adjusted operating expenses was primarily driven by increases in flight volume, salaries, wages and benefits, and fuel rates.

For Q1 2018, Spirit's aircraft fuel expenses increased by 46.4%, or $64.9 million on a y-o-y basis, due to an increase in the cost of fuel per gallon of 21.5% and an increase in fuel gallons consumed of 20.2%. Spirit's cost per available seat mile, excluding special items and fuel (adjusted CASM ex-fuel), was $0.533 in Q1 2018, reflecting a drop of 5.0% compared to the year-ago corresponding period.

Fleet

Spirit took delivery of five new A321ceo aircraft and one new A320ceo aircraft in Q1 2018, ending the quarter with 118 aircraft in its fleet.

Aircraft Agreement

On March 28, 2018, Spirit entered into an agreement with an aircraft lessor to purchase 14 A319 aircraft, which the Company was operating under lease agreements. The purchases of all 14 aircraft are scheduled throughout Q2 2018, for an aggregate gross purchase price of $285.0 million, which will be reduced by the application of maintenance reserves and security deposits held by the lessor. Effective March 31, 2018, the lease agreements associated with these aircraft will be classified as capital leases on the balance sheet until the closing of each individual sale. All transactions are anticipated to be completed prior to June 30, 2018.

Cash Matters

Spirit ended Q1 2018 with unrestricted cash, cash equivalents, and short-term investments of $999.7 million.

Stock Performance Snapshot

May 21, 2018 - At Monday's closing bell, Spirit Airlines' stock was marginally up 0.59%, ending the trading session at $37.37.

Volume traded for the day: 1.35 million shares, which was above the 3-month average volume of 1.28 million shares.

Stock performance in the previous six-month period ? up 0.57%

After yesterday's close, Spirit Airlines' market cap was at $2.55 billion.

Price to Earnings (P/E) ratio was at 18.04.

The stock is part of the Services sector, categorized under the Major Airlines industry. This sector was up 0.7% at the end of the session.

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