Spirit Airlines’ hopes of double-digit margins

Spirit Airlines expects to achieve a positive operating margin in Q2 2023, although A320neo engine supply issues and pilot attrition will prevent the low-cost carrier from attaining an even better profit margin.

CFO Scott Haralson revealed that Spirit’s operating margin is expected to range between 4.5% and 6.5% in Q2 2023. Haralson added that NEO engine supply issues will likely continue to affect utilization for the remainder of the year, while pilot attrition levels are still volatile.

Spirit Airlines ended Q1 2023 with a net loss of $103.9 million and expects its capacity growth to be at the lower range of the 18% to 20% expected for 2023.