Spirit Airlines, Inc. (NYSE:SAVE) Q4 2022 Earnings Call Transcript

Scott Group: Hey. Thanks. Good morning. Your comment about being profitable for the year, can you just talk about the fuel and RASM assumptions you are assuming to get there?

Scott Haralson: Hey Scott, so this is Scott. I will start on the fuel side. So, obviously, we pulled the fuel curve generally about a week or so in advance of the call. And so that €“ at that point, fuel was sitting in around, it was obviously higher in January, but the first quarter will be around $3.20, and it will decline through the year. Probably for the full year, we will be around $3 based on the fuel curve. So, that’s the basic assumption. I don’t know, Matt, do you want to talk about unit revenue for the year, but not really given the guide full year

Matt Klein: Yes. We are not going to talk about the guide, Scott, for full year unit revenue or I am sure leave it at that.

Scott Group: Okay. And then just €“ I think you had a comment that you think CASM will be lower in €˜24 if we take a step back, right, capacity is up 40% versus €˜19, CASM is up 25% or so, like €“ so what changes in €˜24 to sort of get the model working better again the way you would expect where there should be some sort of unit cost operating leverage?

Scott Haralson: Yes. Scott, this is Scott again. So, I think the biggest lever is utilization. We are going to be increasing that through the year, and we will exit at about normal utilization levels, obviously, depending on where the engine reliability issue sets, but that’s the expectation. And if we do that for the full year, that alone mathematically will give us a push down. And we are obviously managing the P&L. So, we feel pretty optimistic about where sort of 2024 and beyond full run rate CASM ex will sit.

Scott Group: Okay. Alright. Thank you.

Operator: And we have no further questions at this time. I will now turn the call back to DeAnne Gabel for closing remarks.

DeAnne Gabel: No, Abby, I think we are done. But thank you so much everyone for joining us today and we will catch you all next time.

Operator: Ladies and gentlemen, this concludes today’s call, and we thank you for your participation. You may now disconnect.