By Natalie DeCoste

Discount airline Spirit has suffered a major financial setback of $50 million due to recent flight cancellations, the company said on Aug. 16.

The company reported to investors that it experienced significant irregular operations due to a variety of factors. The irregular operations resulted in the cancellation of nearly 3,000 flights and a negative revenue impact on the company of about $50 million.

“Beginning July 30, 2021 and continuing through Aug. 9, 2021, Spirit experienced significant irregular operations due to a series of overlapping challenges, primarily adverse weather and airport staffing shortages, leading to severe crew dislocations. In total, Spirit canceled 2,826 flights during this period. The company estimates the negative revenue impact from these disruptions is approximately $50 million,” reported the company.

Spirit also informed investors of its plans to handle the ongoing cancellation problem. According to the company, it decided to make tactical schedule reductions throughout the remainder of the third quarter to deal with staffing shortage issues.

The reduction in flights will continue to cost Spirit anywhere between $80 to $100 million during the third quarter. The company has adjusted its estimates and expects its third-quarter 2021 total operating revenues to be between $885 and $955 million.

Another setback for the company is the added expenses to its operations. Spirit estimates that its third-quarter 2021 adjusted operating expenses will range between $1,030 to $1,040 million. Compared to its previous guidance, the increase is primarily attributed to re-accommodation expenses for guests whose travel plans were impacted by flight reductions, including purchasing tickets on other airlines and covering hotel and additional travel-related costs.

“On behalf of our entire leadership team, we offer an apology to everyone impacted throughout the course of this event. We believe the interruption was a singular event driven by an unprecedented confluence of factors and does not reflect systemic issues. Over the past few years, we have made investments to be one of the most efficient and reliable airlines in the U.S. industry, and we are committed to taking the steps necessary to make sure we maintain that standard,” said Ted Christie, Spirit’s President and Chief Executive Officer.

Amidst the airline’s “tactical reductions,” the Department of Transportation announced that it “has reminded Spirit of its legal obligations, including its obligation to provide prompt refunds when it cancels or significantly changes a flight and the passenger chooses not to accept the alternative offered.”

Spirit is not the only airline to experience flight disruptions and staffing shortages. Sen. Maria Cantwell (D-WA), chair of the Senate Commerce Committee, added Spirit Airlines to the list of U.S. carriers she has been looking into that have these issues despite the $54 billion in payroll aid Congress set aside for airline companies since March 2020.