Spirit Airlines, a US LCC, reported that the GAAP net income for the third quarter of 2016 was $81.4 million ($1.17 per diluted share), or $86.3 million ($1.24 per diluted share) excluding special items.

GAAP operating margin for the third quarter of 2016 was 21.8%, or 23% excluding special items. The airline ended the third quarter of 2016 with unrestricted cash, cash equivalents, and short-term investments of $926.0 million.

At the same time, Spirit's return on invested capital (before taxes and excluding special items) for the twelve months ended on the 30th of September 2016 was 25.3%.

Bob Fornaro, Spirit's President and Chief Executive Officer , said: "During the third quarter 2016, we saw sequential improvement in total revenue directly related to our own revenue initiatives as well as a modest improvement in the industry pricing environment, and are encouraged by the constructive trends we are seeing."

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Spirit Airlines, an LCC based in Florida (USA), took delivery of the very first A320neo for a US customer on the 11th of October 2016. It is the first of 50 A320neo Family aircraft the low-cost carrier has ordered. All of Spirit’s A320neo Family aircraft will be powered by Pratt & Whitney Pure Power PW1100-JM engines.
 

For the third quarter 2016, Spirit's total operating revenue was $621.3 million, an increase of 8.1% compared to the third quarter 2015, driven by a 12.6% increase in flight volume and 0.8% 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% year over year, primarily driven by a decrease in passenger yield as a result of industry competitive pricing pressures. Although yields decreased YoY, throughout the third quarter 2016, the company saw sequential improvement in the rate of decline.

On a per passenger flight segment (PFS) basis, total revenue per PFS for the third quarter 2016 decreased 9%, or $10.84 YoY, to $109.51, primarily driven by a 12.9%, or $8.62, decrease in ticket revenue per PFS related to industry competitive pricing pressures. Non-ticket revenue declined 4.2%, or $2.22, YoY on a per PFS basis to $51.17, primarily driven by a modest decline in bag revenue per PFS.

Total GAAP operating expenses, including special items of $7.8 million primarily related to lease termination charges, increased 16.4%, or $68.5 million, YoY to $486.1 million driven by an increase in flight volume.  Adjusted operating expense for the third quarter 2016 increased 14.6%, or $61 million, to $478.3 million on a capacity increase of 16.2% YoY.

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Spirit Airlines, a ULCC based in Florida, USA, reported an 18.3% increase in its traffic (revenue passenger miles - RPMs) and a capacity (available seat miles) increase of 17.1% in August 2016, year over year, in preliminary traffic results.
 

During the third quarter 2016, Spirit took delivery of 2 new A321ceo aircraft, ending the quarter with 89 aircraft in its fleet.  Also, during the quarter, Spirit purchased three A319 aircraft off lease and extended the leases for two other A319 aircraft.

During the third quarter 2016, Spirit also returned $38 million to shareholders by repurchasing approximately 0.9 million shares.  Year to date Spirit has returned $100 million to shareholders by repurchasing approximately 2.3 million shares.