Seabury Aviation Partners’ Post

Spirit Airlines Delays 10-Q Filing Amid Restructuring Talks with Noteholders - Spirit Airlines, a US-based low-cost carrier, has announced a delay in filing its 10-Q quarterly report due to ongoing restructuring discussions with noteholders. The airline’s decision to postpone the filing reflects its focus on managing debt and financial commitments as it navigates restructuring efforts. These discussions are part of a broader strategy to address Spirit’s financial stability amid challenging market conditions, including increased operational costs and competitive pressures. - https://lnkd.in/dCR8aZME

Wheels Up reported flat revenue of $196m for the second quarter of 2024. Despite relatively unchanged top-line figures, the company’s results showed progress in cost management and operational efficiency. The private aviation company saw an 8% increase in flight service revenue to $163.6m, offset by declines in other areas such as membership and aircraft management. “In our first full quarter since the strategic investment, we have made strong progress on a number of key fronts. Revenues have stabilised after a long period of time as we continue to make changes across the board,” said George Mattson, the company’s CEO while talking to Corporate Jet Investor. CEO George Mattson emphasised the company’s focus on rebuilding sales and improving overall performance. “We made significant progress over the past quarter to improve our business for a sustainable future,” said Todd Smith, Wheels Up CFO. “We are continuing to optimise our cost structure and fleet to focus on profitability. With improving liquidity in the fourth quarter and our partnership with Delta, we believe we are well positioned to continue to invest in our business for the long term.” Read the full text on our blog. #AvfoilNews #WheelsUp #PrivateAviation #Q22024Results #CostManagement #OperationalEfficiency #FlightServices #CorporateAviation #AviationIndustry #GeorgeMattson #ToddSmith #DeltaPartnership #AviationFinance #BusinessAviation #AviationNews #PrivateJet #JetServices #AviationEconomics #CorporateJet #AviationMarket #InvestingInAviation

What makes aviation finance one of the more compelling opportunities in PIMCO’s specialty finance platform? Tune in to an engaging discussion between Greg Conlon, CEO of High Ridge Aviation, and PIMCO’s Harin de Silva. https://bit.ly/3TWIgXw #aviationfinance #alternatives #investing

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The Seabury Aviation Partners and Seabury Securities teams congratulate SAS - Scandinavian Airlines on obtaining the approval of its plan of reorganization from the U.S. Bankruptcy Court for the Southern District of New York. Seabury served as co-lead investment banker and sole restructuring advisor.   Over the course of the chapter 11 process, SAS has successfully reconfigured its aircraft fleet and reached amended lease agreements with 15 lessors, representing 59 aircraft. Through the amended lease agreements, SAS expects to achieve the targeted annual cost savings of at least SEK 1.0 billion in reduced aircraft lease expenses and annual cash flow items relating to aircraft financing. The agreed exit financing transaction with Castlelake Aviation Services Limited includes a total investment in reorganized SAS corresponding to USD 1,200 million, which includes USD 475 million in new unlisted equity and USD 725 million in secured convertible debt.    “This is the first Chapter 11 case involving a European publicly traded company, and this case was exceptionally complicated, given the involvement of three sovereign European countries’ governments,” said John Edward Luth, Chairman, President & CEO of Seabury Capital Group. “We are honored to have served in a lead role in this milestone case, and are pleased that SAS is now well positioned to compete as one of the world’s leading airlines.”   #aviation #airlines #restructuring #teamwork #success #SASForward    https://lnkd.in/gDAAbEdG

What makes aviation finance one of the more compelling opportunities in PIMCO’s specialty finance platform? Tune in to an engaging discussion between Greg Conlon, CEO of High Ridge Aviation, and PIMCO’s Harin de Silva. https://pim.co/qy8xdgft #aviationfinance #alternatives #investing

What makes aviation finance one of the more compelling opportunities in PIMCO’s specialty finance platform? Tune in to an engaging discussion between Greg Conlon, CEO of High Ridge Aviation, and PIMCO’s Harin de Silva. https://pim.co/u7xoul90   #aviationfinance #alternatives #investing #PIMCOAPACInsights

What makes aviation finance one of the more compelling opportunities in PIMCO’s specialty finance platform? Tune in to an engaging discussion between Greg Conlon, CEO of High Ridge Aviation, and PIMCO’s Harin de Silva. https://pim.co/sd77r5pv #aviationfinance #alternatives #investing #PIMCOAPACInsights

Spirit Airlines reports $308 million net loss in third quarter, notes "going concern" amid Chapter 11 restructuring Spirit Airlines reported a third quarter net loss of $308.2 million, or a basic loss per share of $2.81, in the third quarter of the year. The result nearly doubles its loss from the same period a year prior of $157.6 million.  The airline reported total operating revenues of $1.2bn, down from $1.3bn last year. In addition, total operating expenses climbed from $1.4bn last year up to $1.5bn in the quarter ending September 2024. The carrier reported a total operating loss of $296.4 million, increasing from an operating loss of $188.8 million last year.   Spirit, which filed for a pre-approved Chapter 11 restructuring on November 18, 2024, as well as signing a restructuring support agreement (RSA) with its creditors, noted a going concern for the company in its third quarter report. The carrier cited the “increasingly challenging pricing environment” and “increasing costs” that have hurt its performance. The company said it expects the challenging environment to continue for at least the remainder of the year and will create “uncertainty” in its operating results.   The approval allowed Spirit to continue operations as normal.  The company also noted challenges with the Pratt & Whitney geared turbo fan (GTF) fleet, which powers its A320neo family aircraft. Spirit has reduced its capacity as scheduled removal and inspection of these impacted engines continues. The temporary removal of these engines from service is expected to continue through at least 2026, the company said. Spirit is in discussion with Pratt & Whitney for any of its aircraft that remain unavailable for operational service after December 31, 2024.   During the third quarter, Spirit recognised $29.7 million in credits from Pratt & Whitney related to aircraft on ground (AOG). For the first nine months of the year, it has recognised $104.7 million in credits.   As of September 30, 2024, the airline's total assets were valued at $9.5bn, while its total liabilities and shareholders' equity was also $9.5bn. The airline's total current liabilities were $2.5bn as of the quarter's end, worsening from $1.5bn at the end of the previous quarter.  Net cash used in operating activities for the nine months ended September 30, 2024, totalled $634.3 million. Cash and cash equivalents at the end of the quarter was $593.6 million.  During the nine months ended September 30, 2024, Spirit took delivery of 17 aircraft under direct operating leases, seven aircraft under sale leaseback transactions, and purchased four spare engines with cash - one of which was purchased off lease. As of the end of the quarter, Spirit had a fleet consisting of 217 A320 family aircraft. The fleet consists of 143 aircraft financed under operating leases with lease term expirations between 2025 and 2042, as well as owning 56 aircraft - five of which were unencumbered

What makes aviation finance one of the more compelling opportunities in PIMCO’s specialty finance platform? Tune in to an engaging discussion between Greg Conlon, CEO of High Ridge Aviation, and PIMCO’s Harin de Silva. https://bit.ly/3J8MBBH #aviationfinance #alternatives #investing