Spirit Airlines’ total revenue per available seat mile for the first quarter of 2015 fell 9.9% as capacity, which rose 25% during the period, exceeded bookings. Spirit said the RASM decrease was driven by a 7.8% decrease in average yield due to the ramp up of its expansion in new and mature markets, overall fare compression in many of our markets, and increased capacity from other carriers in the Dallas markets.
For the first quarter 2015, Spirit's total operating revenue was $493.4 million, an increase of 12.6% compared to the first quarter 2014, driven by an increase in flight volume.
Total revenue per passenger flight segment (PFS) for the first quarter 2015 decreased 7.6% year over year to $123.96, driven by a 11.7% decrease in ticket revenue per PFS and a 2.1% decrease in non-ticket revenue per PFS. The decrease in non-ticket revenue per PFS was primarily attributable to lower bag revenue per PFS and the outsourcing of Spirit’s onboard catering to a third-party provider under a revenue share agreement.
The company's cost per available seat mile fell 5.6%, aided by a 24% drop in aircraft fuel expenses.
Total operating expenses for the first quarter 2015, excluding $2.7 million of special items, increased 0.9% to $381.4 million. Including special items, total operating expenses increased 1.6% year over year to $384.1 million. Operating expenses benefited from economic fuel expense decreasing 25.4%, or $37.7 million, on a fuel volume increase of 21.5%.
"Once again our team executed well on improving our cost structure. Despite very disruptive winter weather which caused a number of cancelations, and nearly a one percent shorter stage length, our first quarter 2015 Adjusted CASM ex-fuel decreased 5.6 percent year-over-year. This performance sets us up nicely to meet our full year target of delivering Adjusted CASM ex-fuel down 6 to 8 percent year over year," said Ted Christie, Spirit's Chief Financial Officer.