Spirit Airlines has reported a 40.2$ reduction in total operating revenues of $461.3 million for the first quarter 2021 due to the continued negative impacts to demand for air travel due to the COVID-19 pandemic.
Early in the first quarter 2021, Spirit states that it experienced another setback in demand as the new international testing requirements were implemented and some states increased jurisdictional restrictions following spikes in COVID-19 case counts. However, in March 2021, as the vaccine rollout gained traction and jurisdictional restrictions eased, domestic and international demand rebounded strongly.
For the first quarter 2021, total revenue per passenger flight segment decreased 16.4% year over year to $84.27. Fare revenue per segment decreased 24.2% to $31.84 while non-ticket revenue per Segment decreased 10.8% to $52.433.
For the first quarter 2021, total GAAP operating expenses decreased 32.0% year over year to $563.8 million, primarily due to the grant component of the funding received through the payroll support program. Adjusted operating expenses for the first quarter 2021 decreased 11.5% year over year to $733.5 million. The decrease in adjusted operating expenses was primarily driven by reductions in various flight-volume related expenses compared to the first quarter last year, such as fuel, ground handling and distribution. These decreases were partially offset by higher aircraft rent and higher depreciation and amortization.
Spirit ended the first quarter 2021 with $1.9 billion of unrestricted cash, cash equivalents, short-term investment securities and liquidity available under its revolving credit facility. Total capital expenditures for the first quarter 2021 were approximately $92 million, primarily related to pre-delivery deposits associated with future aircraft deliveries and the purchase of two A319 aircraft off lease.
"We were very pleased to see how well both our domestic and international network performed as demand strengthened in the last few weeks of the quarter. This strength, along with improvement in forward bookings, drove positive cash from operations for the full first quarter 2021 even when excluding the payroll support program funds received. Assuming these trends continue, we believe we can achieve a positive Adjusted EBITDA margin for the full year 2021," said Ted Christie, Spirit's President and Chief Executive Officer. "While acknowledging that the recovery is still in progress and may not be linear, we continue to believe we will be among the first U.S. carriers to reach sustained profitability."
Load factor for the first quarter 2021 was 72.1% on a year-over-year capacity decrease of 26.9%.
Spirit took delivery of two new A320neo aircraft during the first quarter 2021, financed through direct operating leases, and purchased two A319ceo aircraft off lease. The company ended the quarter with 159 aircraft in its fleet.
On March 12, 2021, Spirit amended its existing senior secured revolving credit facility, by increasing the existing lending commitments by $60 million, for total lending commitments of $240 million, and extending the maturity date from March 30, 2022 to March 30, 2024. The additional $60 million remained undrawn as of March 31, 2021.