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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Spirit Airlines Inc | NYSE:SAVE | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.01 | 0.28% | 3.55 | 3.6397 | 3.48 | 3.55 | 3,956,838 | 01:00:00 |
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☒
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
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38-1747023
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||
(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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||
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2800 Executive Way
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Miramar
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Florida
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33025
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Name of exchange on which registered
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Trading Symbol
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Common Stock, $0.0001 par value
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New York Stock Exchange
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SAVE
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Large accelerated filer
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☒
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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☐
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(Do not check if a smaller reporting company)
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Emerging growth company
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☐
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Class
|
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Number of Shares
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Common Stock, $0.0001 par value
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68,440,856
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Page No.
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ITEM 1.
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UNAUDITED CONDENSED FINANCIAL STATEMENTS
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Three Months Ended June 30,
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Six Months Ended June 30,
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||||||||||||
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2019
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2018
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2019
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2018
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||||||||
Operating revenues:
|
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||||||||
Passenger
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$
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994,430
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|
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$
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836,350
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|
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$
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1,832,495
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|
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$
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1,525,491
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Other
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18,526
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15,421
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36,257
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30,418
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||||
Total operating revenues
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1,012,956
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851,771
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1,868,752
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1,555,909
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||||
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||||||||
Operating expenses:
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||||||||
Aircraft fuel
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265,006
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246,180
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494,642
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450,826
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||||
Salaries, wages and benefits
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216,375
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187,756
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420,276
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342,852
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||||
Landing fees and other rents
|
64,711
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58,602
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124,360
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108,232
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||||
Aircraft rent
|
46,522
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41,745
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92,304
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|
|
91,936
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||||
Depreciation and amortization
|
54,913
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|
45,618
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105,639
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84,991
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||||
Distribution
|
40,602
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|
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34,997
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76,321
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|
|
65,628
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|
||||
Maintenance, materials and repairs
|
34,688
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31,653
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66,292
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|
|
61,363
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||||
Special charges
|
—
|
|
|
174
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|
|
—
|
|
|
89,342
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|
||||
Loss on disposal of assets
|
1,550
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|
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4,644
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|
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3,463
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5,492
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|
||||
Other operating
|
124,651
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|
91,881
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233,713
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|
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185,523
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||||
Total operating expenses
|
849,018
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|
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743,250
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1,617,010
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1,486,185
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||||||||
Operating income (loss)
|
163,938
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108,521
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251,742
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69,724
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||||||||
Other (income) expense:
|
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||||||||
Interest expense
|
25,266
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|
20,498
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|
50,237
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|
|
38,347
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|
||||
Capitalized interest
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(2,975
|
)
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(2,296
|
)
|
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(5,532
|
)
|
|
(4,548
|
)
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||||
Interest income
|
(7,066
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)
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(4,430
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)
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(13,990
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)
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(8,496
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)
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||||
Other expense
|
144
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188
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377
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321
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|
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Special charges, non-operating
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—
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79,412
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—
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88,613
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|
||||
Total other (income) expense
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15,369
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93,372
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31,092
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114,237
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||||||||
Income (loss) before income taxes
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148,569
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15,149
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220,650
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(44,513
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)
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||||
Provision (benefit) for income taxes
|
34,068
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3,895
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50,073
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(10,845
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)
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Net income (loss)
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$
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114,501
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$
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11,254
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$
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170,577
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$
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(33,668
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)
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Basic earnings (loss) per share
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$
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1.67
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$
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0.16
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$
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2.49
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$
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(0.49
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)
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Diluted earnings (loss) per share
|
$
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1.67
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$
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0.16
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$
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2.49
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$
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(0.49
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)
|
|
Three Months Ended June 30,
|
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Six Months Ended June 30,
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||||||||||||
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2019
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2018
|
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2019
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2018
|
||||||||
Net income (loss)
|
$
|
114,501
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$
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11,254
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$
|
170,577
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$
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(33,668
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)
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Unrealized gain on short-term investment securities, net of deferred taxes of $29, $33, $67 and $26
|
98
|
|
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101
|
|
|
228
|
|
|
78
|
|
||||
Interest rate derivative loss reclassified into earnings, net of taxes of $19, $18, $46, and $39
|
54
|
|
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61
|
|
|
101
|
|
|
120
|
|
||||
Other comprehensive income
|
$
|
152
|
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$
|
162
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$
|
329
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|
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$
|
198
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Comprehensive income (loss)
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$
|
114,653
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$
|
11,416
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|
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$
|
170,906
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$
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(33,470
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)
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|
June 30, 2019
|
|
December 31, 2018
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||||
Assets
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Current assets:
|
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|
||||
Cash and cash equivalents
|
$
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1,110,797
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$
|
1,004,733
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Short-term investment securities
|
104,228
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|
|
102,789
|
|
||
Accounts receivable, net
|
78,125
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|
|
47,660
|
|
||
Aircraft maintenance deposits, net
|
124,585
|
|
|
106,901
|
|
||
Prepaid expenses and other current assets
|
102,952
|
|
|
83,383
|
|
||
Total current assets
|
1,520,687
|
|
|
1,345,466
|
|
||
|
|
|
|
||||
Property and equipment:
|
|
|
|
||||
Flight equipment
|
3,514,104
|
|
|
3,257,215
|
|
||
Ground property and equipment
|
215,774
|
|
|
191,661
|
|
||
Less accumulated depreciation
|
(367,712
|
)
|
|
(332,864
|
)
|
||
|
3,362,166
|
|
|
3,116,012
|
|
||
Operating lease right-of-use assets
|
1,057,846
|
|
|
—
|
|
||
Pre-delivery deposits on flight equipment
|
289,902
|
|
|
236,775
|
|
||
Long-term aircraft maintenance deposits
|
84,507
|
|
|
138,738
|
|
||
Deferred heavy maintenance, net
|
309,555
|
|
|
249,010
|
|
||
Other long-term assets
|
38,118
|
|
|
79,456
|
|
||
Total assets
|
$
|
6,662,781
|
|
|
$
|
5,165,457
|
|
|
|
|
|
||||
Liabilities and shareholders’ equity
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
43,848
|
|
|
$
|
39,320
|
|
Air traffic liability
|
402,990
|
|
|
291,981
|
|
||
Current maturities of long-term debt and finance leases
|
270,407
|
|
|
163,557
|
|
||
Current maturities of operating leases
|
114,877
|
|
|
—
|
|
||
Other current liabilities
|
379,041
|
|
|
339,677
|
|
||
Total current liabilities
|
1,211,163
|
|
|
834,535
|
|
||
|
|
|
|
||||
Long-term debt and finance leases, less current maturities
|
2,025,183
|
|
|
2,024,774
|
|
||
Operating leases, less current maturities
|
915,288
|
|
|
—
|
|
||
Deferred income taxes
|
399,765
|
|
|
355,141
|
|
||
Deferred gains and other long-term liabilities
|
16,355
|
|
|
22,503
|
|
||
Shareholders’ equity:
|
|
|
|
||||
Common stock
|
7
|
|
|
7
|
|
||
Additional paid-in-capital
|
377,639
|
|
|
371,225
|
|
||
Treasury stock, at cost
|
(72,264
|
)
|
|
(67,016
|
)
|
||
Retained earnings
|
1,790,509
|
|
|
1,625,481
|
|
||
Accumulated other comprehensive income (loss)
|
(864
|
)
|
|
(1,193
|
)
|
||
Total shareholders’ equity
|
2,095,027
|
|
|
1,928,504
|
|
||
Total liabilities and shareholders’ equity
|
$
|
6,662,781
|
|
|
$
|
5,165,457
|
|
|
Six Months Ended June 30,
|
||||||
|
2019
|
|
2018
|
||||
Operating activities:
|
|
|
|
||||
Net income
(loss)
|
$
|
170,577
|
|
|
$
|
(33,668
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by operations:
|
|
|
|
||||
Losses reclassified from other comprehensive income
|
148
|
|
|
159
|
|
||
Share-based compensation
|
6,413
|
|
|
5,381
|
|
||
Allowance for doubtful accounts (recoveries)
|
—
|
|
|
(12
|
)
|
||
Amortization of deferred gains and losses and debt issuance costs
|
4,365
|
|
|
4,552
|
|
||
Depreciation and amortization
|
105,639
|
|
|
84,991
|
|
||
Deferred income tax expense (benefit)
|
44,511
|
|
|
(17,604
|
)
|
||
Loss on disposal of assets
|
3,463
|
|
|
5,492
|
|
||
Special charges, non-operating
|
—
|
|
|
88,613
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable, net
|
(30,465
|
)
|
|
(9,212
|
)
|
||
Aircraft maintenance deposits, net
|
(6,214
|
)
|
|
11,222
|
|
||
Prepaid income taxes
|
1,962
|
|
|
—
|
|
||
Other assets
|
10,212
|
|
|
3,003
|
|
||
Deferred heavy maintenance, net
|
(88,350
|
)
|
|
(94,267
|
)
|
||
Income tax receivable
|
—
|
|
|
(828
|
)
|
||
Accounts payable
|
2,024
|
|
|
25,413
|
|
||
Air traffic liability
|
111,009
|
|
|
93,936
|
|
||
Other liabilities
|
6,154
|
|
|
83,809
|
|
||
Other
|
(424
|
)
|
|
8
|
|
||
Net cash provided by operating activities
|
341,024
|
|
|
250,988
|
|
||
Investing activities:
|
|
|
|
||||
Purchase of available-for-sale investment securities
|
(57,355
|
)
|
|
(73,687
|
)
|
||
Proceeds from the maturity of available-for-sale investment securities
|
56,595
|
|
|
72,964
|
|
||
Proceeds from sale of property and equipment
|
—
|
|
|
9,500
|
|
||
Pre-delivery deposits on flight equipment, net of refunds
|
(75,826
|
)
|
|
(92,205
|
)
|
||
Capitalized interest
|
(4,936
|
)
|
|
(4,178
|
)
|
||
Assets under construction for others
|
(2,235
|
)
|
|
—
|
|
||
Purchase of property and equipment
|
(154,702
|
)
|
|
(323,229
|
)
|
||
Net cash used in investing activities
|
(238,459
|
)
|
|
(410,835
|
)
|
||
Financing activities:
|
|
|
|
||||
Proceeds from issuance of long-term debt
|
94,706
|
|
|
440,340
|
|
||
Proceeds from stock options exercised
|
1
|
|
|
2
|
|
||
Payments on debt obligations
|
(85,785
|
)
|
|
(60,649
|
)
|
||
Payments on finance lease obligations
|
(1,796
|
)
|
|
(205,403
|
)
|
||
Reimbursement for assets under construction for others
|
2,235
|
|
|
—
|
|
||
Repurchase of common stock
|
(5,248
|
)
|
|
(986
|
)
|
||
Debt issuance costs
|
(614
|
)
|
|
(1,944
|
)
|
||
Net cash provided by financing activities
|
3,499
|
|
|
171,360
|
|
||
Net increase in cash and cash equivalents
|
106,064
|
|
|
11,513
|
|
||
Cash and cash equivalents at beginning of period
|
1,004,733
|
|
|
800,849
|
|
||
Cash and cash equivalents at end of period
|
$
|
1,110,797
|
|
|
$
|
812,362
|
|
Supplemental disclosures
|
|
|
|
||||
Cash payments for:
|
|
|
|
||||
Interest, net of capitalized interest
|
$
|
41,279
|
|
|
$
|
16,769
|
|
Income taxes paid, net of refunds
|
$
|
7,394
|
|
|
$
|
3,270
|
|
Cash paid for amounts included in the measurement of lease liabilities:
|
|
|
|
||||
Operating cash flows for operating leases
|
$
|
95,643
|
|
|
$
|
—
|
|
Operating cash flows for finance leases
|
$
|
1,457
|
|
|
$
|
—
|
|
Financing cash flows for finance leases
|
$
|
339
|
|
|
$
|
—
|
|
Non-cash transactions:
|
|
|
|
||||
Capital expenditures funded by finance lease borrowings
|
$
|
96,371
|
|
|
$
|
315
|
|
Capital expenditures funded by operating lease borrowings
|
$
|
159,548
|
|
|
$
|
—
|
|
|
Three and Six Months Ended June 30, 2018
|
||||||||||||||||||||||
|
Common Stock
|
|
Additional Paid-In-Capital
|
|
Treasury Stock
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Total
|
||||||||||||
Balance at December 31, 2017
|
$
|
7
|
|
|
$
|
360,153
|
|
|
$
|
(65,854
|
)
|
|
$
|
1,469,732
|
|
|
$
|
(1,464
|
)
|
|
$
|
1,762,574
|
|
Share-based compensation
|
—
|
|
|
3,075
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,075
|
|
||||||
Repurchase of common stock
|
—
|
|
|
—
|
|
|
(959
|
)
|
|
—
|
|
|
—
|
|
|
(959
|
)
|
||||||
Proceeds from options exercised
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||||
Changes in comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
35
|
|
|
35
|
|
||||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(44,922
|
)
|
|
—
|
|
|
(44,922
|
)
|
||||||
Balance at March 31, 2018
|
$
|
7
|
|
|
$
|
363,230
|
|
|
$
|
(66,813
|
)
|
|
$
|
1,424,810
|
|
|
$
|
(1,429
|
)
|
|
$
|
1,719,805
|
|
Share-based compensation
|
—
|
|
|
2,306
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,306
|
|
||||||
Repurchase of common stock
|
—
|
|
|
—
|
|
|
(27
|
)
|
|
—
|
|
|
—
|
|
|
(27
|
)
|
||||||
Proceeds from options exercised
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Changes in comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
162
|
|
|
162
|
|
||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
11,254
|
|
|
—
|
|
|
11,254
|
|
||||||
Balance at June 30, 2018
|
$
|
7
|
|
|
$
|
365,536
|
|
|
$
|
(66,840
|
)
|
|
$
|
1,436,064
|
|
|
$
|
(1,267
|
)
|
|
$
|
1,733,500
|
|
|
Three and Six Months Ended June 30, 2019
|
||||||||||||||||||||||
|
Common Stock
|
|
Additional Paid-In-Capital
|
|
Treasury Stock
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Total
|
||||||||||||
Balance at December 31, 2018
|
$
|
7
|
|
|
$
|
371,225
|
|
|
$
|
(67,016
|
)
|
|
$
|
1,625,481
|
|
|
$
|
(1,193
|
)
|
|
$
|
1,928,504
|
|
Effect of ASU No. 2016-02 implementation (refer to Note 2)
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,549
|
)
|
|
—
|
|
|
(5,549
|
)
|
||||||
Share-based compensation
|
—
|
|
|
3,671
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,671
|
|
||||||
Repurchase of common stock
|
—
|
|
|
—
|
|
|
(5,223
|
)
|
|
—
|
|
|
—
|
|
|
(5,223
|
)
|
||||||
Proceeds from options exercised
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Changes in comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
177
|
|
|
177
|
|
||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
56,076
|
|
|
—
|
|
|
56,076
|
|
||||||
Balance at March 31, 2019
|
$
|
7
|
|
|
$
|
374,896
|
|
|
$
|
(72,239
|
)
|
|
$
|
1,676,008
|
|
|
$
|
(1,016
|
)
|
|
$
|
1,977,656
|
|
Share-based compensation
|
—
|
|
|
2,742
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,742
|
|
||||||
Repurchase of common stock
|
—
|
|
|
—
|
|
|
(25
|
)
|
|
—
|
|
|
—
|
|
|
(25
|
)
|
||||||
Proceeds from options exercised
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
Changes in comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
152
|
|
|
152
|
|
||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
114,501
|
|
|
|
|
|
114,501
|
|
||||||
Balance at June 30, 2019
|
$
|
7
|
|
|
$
|
377,639
|
|
|
$
|
(72,264
|
)
|
|
$
|
1,790,509
|
|
|
$
|
(864
|
)
|
|
$
|
2,095,027
|
|
1.
|
Basis of Presentation
|
2.
|
Recent Accounting Developments
|
3.
|
Revenue
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in thousands)
|
||||||||||||||
Operating revenues:
|
|
|
|
|
|
|
|
||||||||
Fare
|
$
|
515,696
|
|
|
$
|
439,549
|
|
|
$
|
932,041
|
|
|
$
|
782,244
|
|
Non-fare
|
478,734
|
|
|
396,801
|
|
|
900,454
|
|
|
743,247
|
|
||||
Total passenger revenues
|
994,430
|
|
|
836,350
|
|
|
1,832,495
|
|
|
1,525,491
|
|
||||
Other
|
18,526
|
|
|
15,421
|
|
|
36,257
|
|
|
30,418
|
|
||||
Total operating revenues
|
$
|
1,012,956
|
|
|
$
|
851,771
|
|
|
$
|
1,868,752
|
|
|
$
|
1,555,909
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in thousands)
|
||||||||||||||
DOT—Domestic
|
$
|
890,388
|
|
|
$
|
768,297
|
|
|
$
|
1,644,502
|
|
|
$
|
1,417,433
|
|
DOT—Latin America
|
122,568
|
|
|
83,474
|
|
|
224,250
|
|
|
138,476
|
|
||||
Total
|
$
|
1,012,956
|
|
|
$
|
851,771
|
|
|
$
|
1,868,752
|
|
|
$
|
1,555,909
|
|
4.
|
Special Charges
|
5.
|
Earnings (Loss) per Share
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in thousands, except per share amounts)
|
||||||||||||||
Numerator
|
|
|
|
|
|
|
|
||||||||
Net income (loss)
|
$
|
114,501
|
|
|
$
|
11,254
|
|
|
$
|
170,577
|
|
|
$
|
(33,668
|
)
|
Denominator
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares outstanding, basic
|
68,439
|
|
|
68,251
|
|
|
68,410
|
|
|
68,237
|
|
||||
Effect of dilutive stock awards
|
181
|
|
|
59
|
|
|
158
|
|
|
—
|
|
||||
Adjusted weighted-average shares outstanding, diluted
|
68,620
|
|
|
68,310
|
|
|
68,568
|
|
|
68,237
|
|
||||
Earnings (loss) per share
|
|
|
|
|
|
|
|
||||||||
Basic earnings (loss) per common share
|
$
|
1.67
|
|
|
$
|
0.16
|
|
|
$
|
2.49
|
|
|
$
|
(0.49
|
)
|
Diluted earnings (loss) per common share
|
$
|
1.67
|
|
|
$
|
0.16
|
|
|
$
|
2.49
|
|
|
$
|
(0.49
|
)
|
|
|
|
|
|
|
|
|
||||||||
Anti-dilutive weighted-average shares
|
127
|
|
|
248
|
|
|
143
|
|
|
264
|
|
6.
|
Short-term Investment Securities
|
7.
|
Accrued Liabilities
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
(in thousands)
|
||||||
Federal excise and other passenger taxes and fees payable
|
$
|
97,375
|
|
|
$
|
60,604
|
|
Salaries and wages
|
83,379
|
|
|
82,900
|
|
||
Airport obligations
|
64,065
|
|
|
52,029
|
|
||
Aircraft maintenance
|
41,563
|
|
|
59,805
|
|
||
Fuel
|
27,204
|
|
|
25,368
|
|
||
Aircraft and facility lease obligations
|
20,277
|
|
|
15,149
|
|
||
Interest payable
|
17,558
|
|
|
18,086
|
|
||
Other
|
27,620
|
|
|
25,736
|
|
||
Other current liabilities
|
$
|
379,041
|
|
|
$
|
339,677
|
|
8.
|
Financial Instruments and Risk Management
|
9.
|
Leases
|
|
|
Finance Leases
|
|
Operating Leases
|
|
|
||||||||||||||
|
|
|
Aircraft and Spare Engine Leases
|
|
Property Facility Leases
|
|
Other
|
|
Total
Operating and Finance Lease Obligations
|
|||||||||||
|
(in thousands)
|
|||||||||||||||||||
Remainder of 2019
|
|
$
|
94,751
|
|
|
$
|
88,536
|
|
|
$
|
1,396
|
|
|
$
|
290
|
|
|
$
|
184,973
|
|
2020
|
|
780
|
|
|
172,409
|
|
|
2,417
|
|
|
517
|
|
|
176,123
|
|
|||||
2021
|
|
606
|
|
|
171,168
|
|
|
1,909
|
|
|
—
|
|
|
173,683
|
|
|||||
2022
|
|
578
|
|
|
172,951
|
|
|
1,080
|
|
|
—
|
|
|
174,609
|
|
|||||
2023
|
|
202
|
|
|
155,076
|
|
|
1,055
|
|
|
—
|
|
|
156,333
|
|
|||||
2024 and thereafter
|
|
—
|
|
|
592,704
|
|
|
4,938
|
|
|
—
|
|
|
597,642
|
|
|||||
Total minimum lease payments
|
|
$
|
96,917
|
|
|
$
|
1,352,844
|
|
|
$
|
12,795
|
|
|
$
|
807
|
|
|
$
|
1,463,363
|
|
Less amount representing interest
|
|
535
|
|
|
332,667
|
|
|
3,583
|
|
|
31
|
|
|
336,816
|
|
|||||
Present value of minimum lease payments
|
|
$
|
96,382
|
|
|
$
|
1,020,177
|
|
|
$
|
9,212
|
|
|
$
|
776
|
|
|
$
|
1,126,547
|
|
Less current portion
|
|
94,834
|
|
|
112,189
|
|
|
2,137
|
|
|
551
|
|
|
209,711
|
|
|||||
Long-term portion
|
|
$
|
1,548
|
|
|
$
|
907,988
|
|
|
$
|
7,075
|
|
|
$
|
225
|
|
|
$
|
916,836
|
|
|
Three Months Ended June 30, 2019
|
|
Six Months Ended June 30, 2019
|
||||
|
(in thousands)
|
||||||
Finance lease cost
|
|
|
|
||||
Amortization of leased assets
|
$
|
519
|
|
|
$
|
728
|
|
Interest of lease liabilities
|
309
|
|
|
339
|
|
||
Operating lease cost
|
|
|
|
||||
Operating lease cost
(1)
|
48,639
|
|
|
98,353
|
|
||
Short-term lease cost
(1)
|
3,509
|
|
|
6,958
|
|
||
Variable lease cost
(1)
|
31,653
|
|
|
59,770
|
|
||
Total lease cost
|
$
|
84,629
|
|
|
$
|
166,148
|
|
|
June 30, 2019
|
|
Weighted-average remaining lease term
|
|
|
Operating leases
|
9.8 years
|
|
Finance leases
|
0.8 years
|
|
Weighted-average discount rate
|
|
|
Operating leases
|
6.52
|
%
|
Finance leases
|
3.93
|
%
|
10.
|
Commitments and Contingencies
|
Employee Groups
|
|
Representative
|
|
Amendable Date
|
|
Percentage of Workforce
|
Pilots
|
|
Air Line Pilots Association, International ("ALPA")
|
|
February 2023
|
|
26%
|
Flight Attendants
|
|
Association of Flight Attendants ("AFA-CWA")
|
|
May 2021
|
|
46%
|
Dispatchers
|
|
Professional Airline Flight Control Association ("PAFCA")
|
|
October 2023
|
|
1%
|
Ramp Service Agents
|
|
International Association of Machinists and Aerospace Workers ("IAMAW")
|
|
June 2020
|
|
4%
|
Passenger Service Agents
|
|
Transport Workers Union of America ("TWU")
|
|
NA
|
|
3%
|
11.
|
Fair Value Measurements
|
|
June 30, 2019
|
|
December 31, 2018
|
|
Fair Value Level Hierarchy
|
||||||||||||
|
Carrying Value
|
|
Estimated Fair Value
|
|
Carrying Value
|
|
Estimated Fair Value
|
|
|||||||||
|
(in millions)
|
|
|
||||||||||||||
Fixed-rate senior term loans
|
$
|
364.0
|
|
|
$
|
382.4
|
|
|
$
|
382.4
|
|
|
$
|
373.6
|
|
|
Level 3
|
Fixed-rate junior term loans
|
26.8
|
|
|
27.4
|
|
|
31.1
|
|
|
31.1
|
|
|
Level 3
|
||||
Fixed-rate term loans
|
672.7
|
|
|
700.4
|
|
|
625.1
|
|
|
600.1
|
|
|
Level 3
|
||||
2015-1 EETC Class A
|
363.6
|
|
|
382.7
|
|
|
378.6
|
|
|
374.8
|
|
|
Level 2
|
||||
2015-1 EETC Class B
|
76.0
|
|
|
78.2
|
|
|
80.0
|
|
|
78.1
|
|
|
Level 2
|
||||
2015-1 EETC Class C
|
103.8
|
|
|
105.9
|
|
|
109.5
|
|
|
107.9
|
|
|
Level 2
|
||||
2017-1 EETC Class AA
|
235.4
|
|
|
240.7
|
|
|
242.5
|
|
|
228.8
|
|
|
Level 2
|
||||
2017-1 EETC Class A
|
78.5
|
|
|
78.9
|
|
|
80.8
|
|
|
76.6
|
|
|
Level 2
|
||||
2017-1 EETC Class B
|
77.2
|
|
|
77.8
|
|
|
83.7
|
|
|
79.1
|
|
|
Level 2
|
||||
2017-1 EETC Class C
|
85.5
|
|
|
87.6
|
|
|
85.5
|
|
|
84.2
|
|
|
Level 2
|
||||
Revolving credit facility
|
160.0
|
|
|
160.0
|
|
|
135.3
|
|
|
135.3
|
|
|
Level 3
|
||||
Total long-term debt
|
$
|
2,243.5
|
|
|
$
|
2,322.0
|
|
|
$
|
2,234.5
|
|
|
$
|
2,169.6
|
|
|
|
|
Fair Value Measurements as of June 30, 2019
|
||||||||||||||
|
Total
|
|
Level
1 |
|
Level
2 |
|
Level
3 |
||||||||
|
(in millions)
|
||||||||||||||
Cash and cash equivalents
|
$
|
1,110.8
|
|
|
$
|
1,110.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Short-term investment securities
|
104.2
|
|
|
104.2
|
|
|
—
|
|
|
—
|
|
||||
Total assets
|
$
|
1,215.0
|
|
|
$
|
1,215.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total liabilities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Fair Value Measurements as of December 31, 2018
|
||||||||||||||
|
Total
|
|
Level
1 |
|
Level
2 |
|
Level
3 |
||||||||
|
(in millions)
|
||||||||||||||
Cash and cash equivalents
|
$
|
1,004.7
|
|
|
$
|
1,004.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Short-term investment securities
|
102.8
|
|
|
102.8
|
|
|
—
|
|
|
—
|
|
||||
Total assets
|
$
|
1,107.5
|
|
|
$
|
1,107.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total liabilities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
12.
|
Debt and Other Obligations
|
|
|
As of
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||
|
June 30, 2019
|
|
December 31, 2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|||||||||
|
|
(in millions)
|
|
(weighted-average interest rates)
|
||||||||||||||||
Fixed-rate senior term loans due through 2027
|
|
$
|
364.0
|
|
|
$
|
382.4
|
|
|
4.10
|
%
|
|
4.10
|
%
|
|
4.10
|
%
|
|
4.10
|
%
|
Fixed-rate junior term loans due through 2022
|
|
26.8
|
|
|
31.1
|
|
|
6.90
|
%
|
|
6.90
|
%
|
|
6.90
|
%
|
|
6.90
|
%
|
||
Fixed-rate loans due through 2031
|
|
672.7
|
|
|
625.1
|
|
|
3.48
|
%
|
|
3.83
|
%
|
|
3.48
|
%
|
|
3.83
|
%
|
||
Fixed-rate class A 2015-1 EETC due through 2028
|
|
363.6
|
|
|
378.6
|
|
|
4.10
|
%
|
|
4.10
|
%
|
|
4.10
|
%
|
|
4.10
|
%
|
||
Fixed-rate class B 2015-1 EETC due through 2024
|
|
76.0
|
|
|
80.0
|
|
|
4.45
|
%
|
|
4.45
|
%
|
|
4.45
|
%
|
|
4.45
|
%
|
||
Fixed-rate class C 2015-1 EETC due through 2023
|
|
103.8
|
|
|
109.5
|
|
|
4.93
|
%
|
|
4.93
|
%
|
|
4.93
|
%
|
|
4.93
|
%
|
||
Fixed-rate class AA 2017-1 EETC due through 2030
|
|
235.4
|
|
|
242.5
|
|
|
3.38
|
%
|
|
3.38
|
%
|
|
3.38
|
%
|
|
3.38
|
%
|
||
Fixed-rate class A 2017-1 EETC due through 2030
|
|
78.5
|
|
|
80.8
|
|
|
3.65
|
%
|
|
3.65
|
%
|
|
3.65
|
%
|
|
3.65
|
%
|
||
Fixed-rate class B 2017-1 EETC due through 2026
|
|
77.2
|
|
|
83.7
|
|
|
3.80
|
%
|
|
3.80
|
%
|
|
3.80
|
%
|
|
3.80
|
%
|
||
Fixed-rate class C 2017-1 EETC due through 2023
|
|
85.5
|
|
|
85.5
|
|
|
5.11
|
%
|
|
5.11
|
%
|
|
5.11
|
%
|
|
5.11
|
%
|
||
Revolving credit facility due in 2020
|
|
160.0
|
|
|
135.3
|
|
|
3.86
|
%
|
|
N/A
|
|
|
3.87
|
%
|
|
N/A
|
|
||
Long-term debt
|
|
2,243.5
|
|
|
2,234.5
|
|
|
|
|
|
|
|
|
|
||||||
Less current maturities
|
|
175.5
|
|
|
162.8
|
|
|
|
|
|
|
|
|
|
||||||
Less unamortized discounts, net
|
|
44.2
|
|
|
47.7
|
|
|
|
|
|
|
|
|
|
||||||
Total
|
|
$
|
2,023.8
|
|
|
$
|
2,024.0
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2019
|
||
|
|
(in millions)
|
||
Remainder of 2019
|
|
$
|
89.4
|
|
2020
|
|
216.1
|
|
|
2021
|
|
285.8
|
|
|
2022
|
|
164.3
|
|
|
2023
|
|
303.1
|
|
|
2024 and beyond
|
|
1,184.8
|
|
|
Total debt principal payments
|
|
$
|
2,243.5
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
2019
|
|
2018
|
|
2019
|
|
2018
|
|||||||||
|
(in thousands)
|
||||||||||||||
Fixed-rate senior term loans
|
$
|
3,878
|
|
|
$
|
4,257
|
|
|
$
|
7,823
|
|
|
$
|
8,573
|
|
Fixed-rate junior term loans
|
489
|
|
|
636
|
|
|
1,012
|
|
|
1,303
|
|
||||
Fixed-rate term loans
|
6,432
|
|
|
4,881
|
|
|
12,634
|
|
|
9,792
|
|
||||
Class A 2015-1 EETC
|
3,709
|
|
|
4,015
|
|
|
7,547
|
|
|
8,157
|
|
||||
Class B 2015-1 EETC
|
841
|
|
|
930
|
|
|
1,721
|
|
|
1,942
|
|
||||
Class C 2015-1 EETC
|
1,280
|
|
|
789
|
|
|
2,615
|
|
|
789
|
|
||||
Class AA 2017-1 EETC
|
1,997
|
|
|
1,576
|
|
|
3,986
|
|
|
2,257
|
|
||||
Class A 2017-1 EETC
|
720
|
|
|
568
|
|
|
1,437
|
|
|
814
|
|
||||
Class B 2017-1 EETC
|
737
|
|
|
654
|
|
|
1,491
|
|
|
936
|
|
||||
Class C 2017-1 EETC
|
1,092
|
|
|
466
|
|
|
2,171
|
|
|
466
|
|
||||
Revolving credit facility
|
1,559
|
|
|
—
|
|
|
2,973
|
|
|
—
|
|
||||
Amortization of deferred financing costs
|
2,177
|
|
|
1,655
|
|
|
4,369
|
|
|
3,146
|
|
||||
Commitment and other fees
|
46
|
|
|
53
|
|
|
119
|
|
|
133
|
|
||||
Finance leases
|
309
|
|
|
18
|
|
|
339
|
|
|
39
|
|
||||
Total
|
$
|
25,266
|
|
|
$
|
20,498
|
|
|
$
|
50,237
|
|
|
$
|
38,347
|
|
ITEM 2.
|
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
Three Months Ended June 30,
|
|
Percent Change
|
|||||
|
2019
|
|
2018
|
|
||||
Operating Statistics (unaudited) (A):
|
|
|
|
|
|
|||
Average aircraft
|
134.5
|
|
|
118.7
|
|
|
13.3
|
%
|
Aircraft at end of period
|
135
|
|
|
119
|
|
|
13.4
|
%
|
Average daily aircraft utilization (hours)
|
12.8
|
|
|
12.6
|
|
|
1.6
|
%
|
Average stage length (miles)
|
1,004
|
|
|
1,051
|
|
|
(4.5
|
)%
|
Block hours
|
157,182
|
|
|
136,357
|
|
|
15.3
|
%
|
Departures
|
58,517
|
|
|
49,404
|
|
|
18.4
|
%
|
Passenger flight segments (PFSs) (thousands)
|
8,953
|
|
|
7,554
|
|
|
18.5
|
%
|
Revenue passenger miles (RPMs) (thousands)
|
9,157,488
|
|
|
7,961,128
|
|
|
15.0
|
%
|
Available seat miles (ASMs) (thousands)
|
10,775,878
|
|
|
9,515,842
|
|
|
13.2
|
%
|
Load factor (%)
|
85.0
|
%
|
|
83.7
|
%
|
|
1.3 pts
|
|
Fare revenue per passenger flight segment ($)
|
57.60
|
|
|
58.19
|
|
|
(1.0
|
)%
|
Non-ticket revenue per passenger flight segment ($)
|
55.54
|
|
|
54.57
|
|
|
1.8
|
%
|
Total revenue per passenger flight segment ($)
|
113.14
|
|
|
112.76
|
|
|
0.3
|
%
|
Average yield (cents)
|
11.06
|
|
|
10.70
|
|
|
3.4
|
%
|
TRASM (cents)
|
9.40
|
|
|
8.95
|
|
|
5.0
|
%
|
CASM (cents)
|
7.88
|
|
|
7.81
|
|
|
0.9
|
%
|
Adjusted CASM (cents)
|
7.86
|
|
|
7.76
|
|
|
1.3
|
%
|
Adjusted CASM ex-fuel (cents)
|
5.41
|
|
|
5.17
|
|
|
4.6
|
%
|
Fuel gallons consumed (thousands)
|
122,447
|
|
|
106,144
|
|
|
15.4
|
%
|
Average economic fuel cost per gallon ($)
|
2.16
|
|
|
2.32
|
|
|
(6.9
|
)%
|
|
Six Months Ended June 30,
|
|
Percent Change
|
|||||
|
2019
|
|
2018
|
|
||||
Operating Statistics (unaudited) (A):
|
|
|
|
|
|
|||
Average aircraft
|
132.6
|
|
|
116.4
|
|
|
13.9
|
%
|
Aircraft at end of period
|
135
|
|
|
119
|
|
|
13.4
|
%
|
Average daily aircraft utilization (hours)
|
12.5
|
|
|
12.3
|
|
|
1.6
|
%
|
Average stage length (miles)
|
1,016
|
|
|
1,038
|
|
|
(2.1
|
)%
|
Block hours
|
300,612
|
|
|
259,310
|
|
|
15.9
|
%
|
Departures
|
110,692
|
|
|
94,386
|
|
|
17.3
|
%
|
Passenger flight segments (PFSs) (thousands)
|
16,773
|
|
|
14,092
|
|
|
19.0
|
%
|
Revenue passenger miles (RPMs) (thousands)
|
17,290,518
|
|
|
14,774,647
|
|
|
17.0
|
%
|
Available seat miles (ASMs) (thousands)
|
20,604,922
|
|
|
17,924,606
|
|
|
15.0
|
%
|
Load factor (%)
|
83.9
|
%
|
|
82.4
|
%
|
|
1.5 pt
|
|
Fare revenue per passenger flight segment ($)
|
55.57
|
|
|
55.51
|
|
|
0.1
|
%
|
Non-ticket revenue per passenger flight segment ($)
|
55.85
|
|
|
54.90
|
|
|
1.7
|
%
|
Total revenue per passenger flight segment ($)
|
111.42
|
|
|
110.41
|
|
|
0.9
|
%
|
Average yield (cents)
|
10.81
|
|
|
10.53
|
|
|
2.7
|
%
|
TRASM (cents)
|
9.07
|
|
|
8.68
|
|
|
4.5
|
%
|
CASM (cents)
|
7.85
|
|
|
8.29
|
|
|
(5.3
|
)%
|
Adjusted CASM (cents)
|
7.83
|
|
|
7.76
|
|
|
0.9
|
%
|
Adjusted CASM ex-fuel (cents)
|
5.43
|
|
|
5.25
|
|
|
3.4
|
%
|
Fuel gallons consumed (thousands)
|
232,275
|
|
|
201,147
|
|
|
15.5
|
%
|
Average economic fuel cost per gallon ($)
|
2.13
|
|
|
2.24
|
|
|
(4.9
|
)%
|
|
Three Months Ended June 30,
|
|
|
|||||||
|
2019
|
|
2018
|
|
||||||
|
(in thousands, except per gallon amounts)
|
|
Percent Change
|
|||||||
Fuel gallons consumed
|
122,447
|
|
|
106,144
|
|
|
15.4
|
%
|
||
Into-plane fuel cost per gallon
|
$
|
2.16
|
|
|
$
|
2.32
|
|
|
(6.9
|
)%
|
Into-plane fuel expense
|
$
|
265,006
|
|
|
$
|
246,180
|
|
|
7.6
|
%
|
Realized losses (gains) related to fuel derivative contracts, net
|
—
|
|
|
—
|
|
|
NM
|
|
||
Unrealized losses (gains) related to fuel derivative contracts, net
|
—
|
|
|
—
|
|
|
NM
|
|
||
Aircraft fuel expense (per statements of operations)
|
$
|
265,006
|
|
|
$
|
246,180
|
|
|
7.6
|
%
|
|
Three Months Ended June 30,
|
|
|
|||||||
|
2019
|
|
2018
|
|
||||||
|
(in thousands, except per gallon amounts)
|
|
Percent Change
|
|||||||
Into-plane fuel expense
|
$
|
265,006
|
|
|
$
|
246,180
|
|
|
7.6
|
%
|
Realized losses (gains) related to fuel derivative contracts, net
|
—
|
|
|
—
|
|
|
NM
|
|
||
Economic fuel expense
|
$
|
265,006
|
|
|
$
|
246,180
|
|
|
7.6
|
%
|
Fuel gallons consumed
|
122,447
|
|
|
106,144
|
|
|
15.4
|
%
|
||
Economic fuel cost per gallon
|
$
|
2.16
|
|
|
$
|
2.32
|
|
|
(6.9
|
)%
|
|
Three Months Ended June 30,
|
|
Dollar Change
|
|
Percent Change
|
|
Cost per ASM
|
|
Per-ASM Change
|
|
Percent Change
|
|||||||||||||||
|
|
|
Three Months Ended June 30,
|
|
||||||||||||||||||||||
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
|||||||||||||||||
|
(in thousands)
|
|
|
|
(in cents)
|
|
|
|||||||||||||||||||
Aircraft fuel
|
$
|
265,006
|
|
|
$
|
246,180
|
|
|
$
|
18,826
|
|
|
7.6
|
%
|
|
2.46
|
|
|
2.59
|
|
|
(0.13
|
)
|
|
(5.0
|
)%
|
Salaries, wages, and benefits
|
216,375
|
|
|
187,756
|
|
|
28,619
|
|
|
15.2
|
%
|
|
2.01
|
|
|
1.97
|
|
|
0.04
|
|
|
2.0
|
%
|
|||
Landing fees and other rents
|
64,711
|
|
|
58,602
|
|
|
6,109
|
|
|
10.4
|
%
|
|
0.60
|
|
|
0.62
|
|
|
(0.02
|
)
|
|
(3.2
|
)%
|
|||
Aircraft rent
|
46,522
|
|
|
41,745
|
|
|
4,777
|
|
|
11.4
|
%
|
|
0.43
|
|
|
0.44
|
|
|
(0.01
|
)
|
|
(2.3
|
)%
|
|||
Depreciation and amortization
|
54,913
|
|
|
45,618
|
|
|
9,295
|
|
|
20.4
|
%
|
|
0.51
|
|
|
0.48
|
|
|
0.03
|
|
|
6.3
|
%
|
|||
Distribution
|
40,602
|
|
|
34,997
|
|
|
5,605
|
|
|
16.0
|
%
|
|
0.38
|
|
|
0.37
|
|
|
0.01
|
|
|
2.7
|
%
|
|||
Maintenance, materials and repairs
|
34,688
|
|
|
31,653
|
|
|
3,035
|
|
|
9.6
|
%
|
|
0.32
|
|
|
0.33
|
|
|
(0.01
|
)
|
|
(3.0
|
)%
|
|||
Special charges
|
—
|
|
|
174
|
|
|
(174
|
)
|
|
NM
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
NM
|
|
|||
Loss on disposal of assets
|
1,550
|
|
|
4,644
|
|
|
(3,094
|
)
|
|
NM
|
|
|
0.01
|
|
|
0.05
|
|
|
(0.04
|
)
|
|
NM
|
|
|||
Other operating
|
124,651
|
|
|
91,881
|
|
|
32,770
|
|
|
35.7
|
%
|
|
1.16
|
|
|
0.97
|
|
|
0.19
|
|
|
19.6
|
%
|
|||
Total operating expenses
|
$
|
849,018
|
|
|
$
|
743,250
|
|
|
$
|
105,768
|
|
|
14.2
|
%
|
|
7.88
|
|
|
7.81
|
|
|
0.07
|
|
|
0.9
|
%
|
Adjusted CASM (1)
|
|
|
|
|
|
|
|
|
7.86
|
|
|
7.76
|
|
|
0.10
|
|
|
1.3
|
%
|
|||||||
Adjusted CASM ex-fuel (2)
|
|
|
|
|
|
|
|
|
5.41
|
|
|
5.17
|
|
|
0.24
|
|
|
4.6
|
%
|
(1)
|
Reconciliation of CASM to Adjusted CASM:
|
|
Three Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
||||||||||
|
(in millions)
|
|
Per ASM
|
|
(in millions)
|
|
Per ASM
|
||||||
CASM (cents)
|
|
|
7.88
|
|
|
|
|
7.81
|
|
||||
Unrealized losses (gains) related to fuel derivative contracts, net
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
Loss on disposal of assets
|
1.6
|
|
|
0.01
|
|
|
4.6
|
|
|
0.05
|
|
||
Special charges
|
—
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
||
Adjusted CASM (cents)
|
|
|
7.86
|
|
|
|
|
7.76
|
|
(2)
|
Excludes aircraft fuel expense, loss on disposal of assets and special charges.
|
|
Six Months Ended June 30,
|
|
|
|||||||
|
2019
|
|
2018
|
|
||||||
|
(in thousands, except per gallon amounts)
|
|
Percent Change
|
|||||||
Fuel gallons consumed
|
232,275
|
|
|
201,147
|
|
|
15.5
|
%
|
||
Into-plane fuel cost per gallon
|
$
|
2.13
|
|
|
$
|
2.24
|
|
|
(4.9
|
)%
|
Into-plane fuel expense
|
$
|
494,642
|
|
|
$
|
450,826
|
|
|
9.7
|
%
|
Realized losses (gains) related to fuel derivative contracts, net
|
—
|
|
|
—
|
|
|
NM
|
|
||
Unrealized losses (gains) related to fuel derivative contracts, net
|
—
|
|
|
—
|
|
|
NM
|
|
||
Aircraft fuel expense (per statements of operations)
|
$
|
494,642
|
|
|
$
|
450,826
|
|
|
9.7
|
%
|
|
Six Months Ended June 30,
|
|
|
|||||||
|
2019
|
|
2018
|
|
||||||
|
(in thousands, except per gallon amounts)
|
|
Percent Change
|
|||||||
Into-plane fuel expense
|
$
|
494,642
|
|
|
$
|
450,826
|
|
|
9.7
|
%
|
Realized losses (gains) related to fuel derivative contracts, net
|
—
|
|
|
—
|
|
|
NM
|
|
||
Economic fuel expense
|
$
|
494,642
|
|
|
$
|
450,826
|
|
|
9.7
|
%
|
Fuel gallons consumed
|
232,275
|
|
|
201,147
|
|
|
15.5
|
%
|
||
Economic fuel cost per gallon
|
$
|
2.13
|
|
|
$
|
2.24
|
|
|
(4.9
|
)%
|
|
Six Months Ended June 30,
|
|
Dollar Change
|
|
Percent Change
|
|
Cost per ASM
|
|
Per-ASM Change
|
|
Percent Change
|
|||||||||||||||
|
|
|
Six Months Ended June 30,
|
|
||||||||||||||||||||||
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
|||||||||||||||||
|
(in thousands)
|
|
|
|
(in cents)
|
|
|
|||||||||||||||||||
Aircraft fuel
|
$
|
494,642
|
|
|
$
|
450,826
|
|
|
$
|
43,816
|
|
|
9.7
|
%
|
|
2.40
|
|
|
2.52
|
|
|
(0.12
|
)
|
|
(4.8
|
)%
|
Salaries, wages, and benefits
|
420,276
|
|
|
342,852
|
|
|
77,424
|
|
|
22.6
|
%
|
|
2.04
|
|
|
1.91
|
|
|
0.13
|
|
|
6.8
|
%
|
|||
Landing fees and other rents
|
124,360
|
|
|
108,232
|
|
|
16,128
|
|
|
14.9
|
%
|
|
0.60
|
|
|
0.60
|
|
|
—
|
|
|
—
|
%
|
|||
Aircraft rent
|
92,304
|
|
|
91,936
|
|
|
368
|
|
|
0.4
|
%
|
|
0.45
|
|
|
0.51
|
|
|
(0.06
|
)
|
|
(11.8
|
)%
|
|||
Depreciation and amortization
|
105,639
|
|
|
84,991
|
|
|
20,648
|
|
|
24.3
|
%
|
|
0.51
|
|
|
0.47
|
|
|
0.04
|
|
|
8.5
|
%
|
|||
Distribution
|
76,321
|
|
|
65,628
|
|
|
10,693
|
|
|
16.3
|
%
|
|
0.37
|
|
|
0.37
|
|
|
—
|
|
|
—
|
%
|
|||
Maintenance, materials and repairs
|
66,292
|
|
|
61,363
|
|
|
4,929
|
|
|
8.0
|
%
|
|
0.32
|
|
|
0.34
|
|
|
(0.02
|
)
|
|
(5.9
|
)%
|
|||
Special charges
|
—
|
|
|
89,342
|
|
|
(89,342
|
)
|
|
NM
|
|
|
—
|
|
|
0.50
|
|
|
(0.50
|
)
|
|
NM
|
|
|||
Loss on disposal of assets
|
3,463
|
|
|
5,492
|
|
|
(2,029
|
)
|
|
NM
|
|
|
0.02
|
|
|
0.03
|
|
|
(0.01
|
)
|
|
NM
|
|
|||
Other operating
|
233,713
|
|
|
185,523
|
|
|
48,190
|
|
|
26.0
|
%
|
|
1.13
|
|
|
1.04
|
|
|
0.09
|
|
|
8.7
|
%
|
|||
Total operating expenses
|
$
|
1,617,010
|
|
|
$
|
1,486,185
|
|
|
$
|
130,825
|
|
|
8.8
|
%
|
|
7.85
|
|
|
8.29
|
|
|
(0.44
|
)
|
|
(5.3
|
)%
|
Adjusted CASM (1)
|
|
|
|
|
|
|
|
|
7.83
|
|
|
7.76
|
|
|
0.07
|
|
|
0.9
|
%
|
|||||||
Adjusted CASM ex-fuel (2)
|
|
|
|
|
|
|
|
|
5.43
|
|
|
5.25
|
|
|
0.18
|
|
|
3.4
|
%
|
(1)
|
Reconciliation of CASM to Adjusted CASM:
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
||||||||||
|
(in millions)
|
|
Per ASM
|
|
(in millions)
|
|
Per ASM
|
||||||
CASM (cents)
|
|
|
7.85
|
|
|
|
|
8.29
|
|
||||
Unrealized losses (gains) related to fuel derivative contracts, net
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
Loss on disposal of assets
|
3.5
|
|
|
0.02
|
|
|
5.5
|
|
|
0.03
|
|
||
Special charges
|
—
|
|
|
—
|
|
|
89.3
|
|
|
0.50
|
|
||
Adjusted CASM (cents)
|
|
|
7.83
|
|
|
|
|
7.76
|
|
(2)
|
Excludes aircraft fuel expense, loss on disposal of assets and special charges.
|
|
|
Remainder of 2019
|
|
2020 - 2021
|
|
2022 - 2023
|
|
2024 and beyond
|
|
Total
|
||||||||||
Long-term debt (1)
|
|
$
|
89
|
|
|
$
|
502
|
|
|
$
|
467
|
|
|
$
|
1,185
|
|
|
$
|
2,243
|
|
Interest commitments (2)
|
|
43
|
|
|
150
|
|
|
118
|
|
|
158
|
|
|
469
|
|
|||||
Finance and operating lease obligations
|
|
185
|
|
|
350
|
|
|
331
|
|
|
598
|
|
|
1,464
|
|
|||||
Flight equipment purchase obligations
|
|
389
|
|
|
1,634
|
|
|
26
|
|
|
—
|
|
|
2,049
|
|
|||||
Other (3)
|
|
7
|
|
|
32
|
|
|
27
|
|
|
60
|
|
|
126
|
|
|||||
Total future payments on contractual obligations
|
|
$
|
713
|
|
|
$
|
2,668
|
|
|
$
|
969
|
|
|
$
|
2,001
|
|
|
$
|
6,351
|
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
ITEM 1A.
|
RISK FACTORS
|
ITEM 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
ISSUER PURCHASES OF EQUITY SECURITIES
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||
Period
|
|
Total Number of Shares Purchased
|
|
Average Price Paid per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
|
Approximate Dollar Value of Shares that May Yet be Purchased Under Plans or Programs
|
||||||
April 1-30, 2019
|
|
11
|
|
|
$
|
56.22
|
|
|
—
|
|
|
$
|
—
|
|
May 1-31, 2019
|
|
262
|
|
|
$
|
47.33
|
|
|
—
|
|
|
$
|
—
|
|
June 1-30, 2019
|
|
244
|
|
|
$
|
48.93
|
|
|
—
|
|
|
$
|
—
|
|
Total
|
|
517
|
|
|
$
|
48.27
|
|
|
—
|
|
|
|
ITEM 3.
|
DEFAULTS UPON SENIOR SECURITIES
|
ITEM 4.
|
MINE SAFETY DISCLOSURES
|
ITEM 5.
|
OTHER INFORMATION
|
ITEM 6.
|
EXHIBITS
|
Exhibit Number
|
|
Description of Exhibits
|
31.1
|
|
|
|
|
|
31.2
|
|
|
|
|
|
32.1*
|
|
|
|
|
|
32.2*
|
|
|
|
|
|
101.INS
|
|
XBRL Instance Document - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase
|
*
|
Exhibits 32.1 and 32.2 are being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, nor shall such exhibits be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act or the Exchange Act, except as otherwise specifically stated in such filing.
|
|
SPIRIT AIRLINES, INC.
|
|
|
|
|
Date: July 24, 2019
|
By:
|
/s/ Scott M. Haralson
|
|
|
Scott M. Haralson
|
|
|
Senior Vice President and
Chief Financial Officer
|
1 Year Spirit Airlines Chart |
1 Month Spirit Airlines Chart |
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