In the past week, Spirit Airlines SAVE reported a loss for the second quarter of 2022.The loss was, however, narrower than year-ago loss. Upbeat air-travel demand aided results.
Copa Holdings CPA reported a load factor (% of seats filled by passengers) of 87% for July 2022, higher than the July 2019 (pre-coronavirus level) load factor of 86.6%. Alaska Airlines, the wholly-owned subsidiary of Alaska Air Group ALK received encouraging tidings on the labor front when 5,300 of its workers, represented by the Machinists union, ratified a two-extension to their pay-related contract.
1 Spirit Airlines’ second-quarter 2022 loss (excluding 18 cents from non-recurring items) of 30 cents per share was narrower than the Zacks Consensus Estimate and the year-ago quarter’s loss of 34 cents each. In second-quarter 2022, operating revenues of $1,366.6 million surpassed the Zacks Consensus Estimate of $1353.6 million and improved 59% year over year on the back of improving air-travel demand and increased flight volume and higher operating yields. SAVE expects adjusted operating expenses for the third quarter in the range of $1,320-$1,330 million. Adjusted pre-tax margin is expected in the -1 to +1% range.



2. Alaska Airlines’ customer service, cargo and ground service employees, and others who are represented by the International Association of Machinists and Aerospace Workers ratified a two-year extension to their contract. The approval ensures wage hikes and other benefits through 2026. Salient features of the contract include higher base wage rates for all classifications in the 8.9-17.4% band, effective Aug 10, 2022. The employees will be eligible for a further 2.5% hike in all base wage rates for all classifications from the same date of 2023. Base wage rate will also increase 2.5% for the following two years. The existing job security clause (amendable on Sep 27, 2026) is extended to Sep 27, 2028.