10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________________________________________________________

Form 10-Q

_______________________________________________________________________

(Mark One)

ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2016

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission File Number: 001-35186

_______________________________________________________________________

SPIRIT AIRLINES, INC.

(Exact name of registrant as specified in its charter)

_______________________________________________________________________

Delaware	38-1747023
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
2800 Executive Way Miramar, Florida	33025
(Address of principal executive offices)	(Zip Code)

(954) 447-7920

(Registrant’s telephone number, including area code)

_______________________________________________________________________

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý  No  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ý    No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “small reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	ý	Accelerated filer	o
Non-accelerated filer	o	Smaller reporting company	o

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act).    Yes  o    No  ý

Indicate the number of shares outstanding of each of the registrant’s classes of common stock as of the close of business on October 18, 2016:

Class	Number of Shares
Common Stock, $0.0001 par value	69,322,496

Table of Contents

INDEX

			Page No.
Part I. Financial Information
	Item 1.	Condensed Financial Statements (unaudited)	1
		Condensed Statements of Operations - Three and Nine Months Ended September 30, 2016 and 2015	1
		Condensed Statements of Comprehensive Income - Three and Nine Months Ended September 30, 2016 and 2015	2
		Condensed Balance Sheets – September 30, 2016 and December 31, 2015	3
		Condensed Statements of Cash Flows – Nine Months Ended September 30, 2016 and 2015	4
		Notes to Condensed Financial Statements	5
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
		Glossary of Airline Terms	30
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	32
	Item 4.	Controls and Procedures	32
Part II. Other Information
	Item 1.	Legal Proceedings	34
	Item 1A.	Risk Factors	34
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	35
	Item 3.	Defaults Upon Senior Securities	35
	Item 4.	Mine Safety Disclosures	35
	Item 5.	Other Information	35
	Item 6.	Exhibits	36
Signature			37

PART I. Financial Information

ITEM 1. UNAUDITED CONDENSED FINANCIAL STATEMENTS

Spirit Airlines, Inc.

Condensed Statements of Operations

(unaudited, in thousands, except per share amounts)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Operating revenues:
Passenger	$	331,004		$	319,812		$	900,031		$	901,851
Non-ticket	290,325			255,029			843,574			719,766
Total operating revenues	621,329			574,841			1,743,605			1,621,617
Operating expenses:
Aircraft fuel	121,844			115,899			321,018			356,232
Salaries, wages and benefits	120,190			95,081			349,530			281,175
Aircraft rent	49,367			53,525			151,433			159,440
Landing fees and other rents	39,345			34,577			114,096			98,487
Distribution	25,565			23,074			73,190			65,920
Maintenance, materials and repairs	30,443			21,473			72,010			61,904
Depreciation and amortization	25,304			19,628			73,370			51,630
Other operating	66,277			54,151			197,833			156,071
Loss on disposal of assets	423			290			1,166			1,300
Special charges (credits)	7,355			(76		)	31,609			673
Total operating expenses	486,113			417,622			1,385,255			1,232,832
Operating income	135,216			157,219			358,350			388,785
Other (income) expense:
Interest expense	11,362			5,951			29,588			13,182
Capitalized interest	(3,067		)	(3,030		)	(9,163		)	(8,392		)
Interest income	(1,222		)	(233		)	(4,235		)	(544		)
Other expense	180			166			407			282
Total other (income) expense	7,253			2,854			16,597			4,528
Income before income taxes	127,963			154,365			341,753			384,257
Provision for income taxes	46,581			57,251			125,367			141,437
Net income	$	81,382		$	97,114		$	216,386		$	242,820
Basic earnings per share	$	1.17		$	1.35		$	3.06		$	3.35
Diluted earnings per share	$	1.17		$	1.35		$	3.05		$	3.34

The accompanying Notes are an integral part of these Condensed Financial Statements.

1

Spirit Airlines, Inc.

Condensed Statements of Comprehensive Income

(unaudited, in thousands)

	Three Months Ended September 30,					Nine Months Ended September 30,
	2016		2015			2016		2015
Net income	$	81,382	$	97,114		$	216,386	$	242,820
Unrealized gain (loss) on interest rate derivative instruments, net of deferred taxes of $0, ($320), $0 and ($511)	—		(553		)	—		(909		)
Unrealized gain (loss) on investment securities, net of deferred taxes of $3, $0, $3 and $0	4		—			4		—
Interest rate swap losses reclassified into earnings, net of taxes of $32, $15, $97 and $15	56		25			170		25
Other comprehensive income (loss)	$	60	$	(528	)	$	174	$	(884	)
Comprehensive income	$	81,442	$	96,586		$	216,560	$	241,936

The accompanying Notes are an integral part of these Condensed Financial Statements.

2

Spirit Airlines, Inc.

Condensed Balance Sheets

(unaudited, in thousands)

	September 30, 2016			December 31, 2015
Assets
Current assets:
Cash and cash equivalents	$	825,904		$	803,632
Investment securities	100,083			—
Accounts receivable, net	35,892			28,266
Aircraft maintenance deposits	87,105			73,415
Prepaid income taxes	6,060			72,278
Prepaid expenses and other current assets	48,455			48,749
Total current assets	1,103,499			1,026,340
Property and equipment:
Flight equipment	1,386,310			834,927
Ground property and equipment	109,451			74,814
Less accumulated depreciation	(105,653		)	(65,524		)
	1,390,108			844,217
Deposits on flight equipment purchase contracts	272,690			286,837
Long-term aircraft maintenance deposits	198,426			206,485
Deferred heavy maintenance, net	79,878			89,127
Other long-term assets	85,024			77,539
Total assets	$	3,129,625		$	2,530,545
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable	$	29,906		$	17,043
Air traffic liability	238,793			216,831
Current maturities of long-term debt	84,443			49,637
Other current liabilities	217,779			182,729
Total current liabilities	570,921			466,240
Long-term debt, less current maturities	894,809			596,693
Long-term deferred income taxes	299,231			221,481
Deferred gains and other long-term liabilities	20,108			20,821
Shareholders’ equity:
Common stock	7			7
Additional paid-in-capital	549,375			544,277
Treasury stock, at cost	(218,572		)	(116,182		)
Retained earnings	1,015,140			798,754
Accumulated other comprehensive loss	(1,394		)	(1,546		)
Total shareholders’ equity	1,344,556			1,225,310
Total liabilities and shareholders’ equity	$	3,129,625		$	2,530,545

The accompanying Notes are an integral part of these Condensed Financial Statements.

3

Spirit Airlines, Inc.

Condensed Statements of Cash Flows

(unaudited, in thousands)

	Nine Months Ended September 30,
	2016			2015
Operating activities:
Net income	$	216,386		$	242,820
Adjustments to reconcile net income to net cash provided by operations:
Unrealized losses on open derivative contracts, net	—			2,239
Losses reclassified from other comprehensive income	267			—
Equity-based compensation	5,503			6,999
Allowance for doubtful accounts	213			7
Amortization of deferred gains and losses	3,837			730
Depreciation and amortization	73,370			51,630
Deferred income tax expense	77,627			63,960
Loss on disposal of assets	1,166			1,300
Lease termination cost	31,609			—
Changes in operating assets and liabilities:
Accounts receivable	(7,840		)	(10,374		)
Aircraft maintenance deposits	(38,299		)	(17,488		)
Prepaid income taxes	66,218			—
Long-term deposits and other assets	(43,252		)	(44,294		)
Accounts payable	(7,044		)	2,340
Air traffic liability	21,684			56,960
Other liabilities	38,596			12,161
Net cash provided by operating activities	440,041			368,990
Investing activities:
Proceeds from sale of property and equipment	50			—
Capitalized interest	(7,032		)	(2,707		)
Pre-delivery deposits for flight equipment, net of refunds	(109,260		)	(87,658		)
Purchase of investment securities	(100,076		)	—
Purchase of property and equipment	(447,455		)	(451,799		)
Net cash used in investing activities	(663,773		)	(542,164		)
Financing activities:
Proceeds from issuance of long-term debt	378,569			416,000
Proceeds from stock options exercised	92			32
Payments on debt and capital lease obligations	(29,663		)	(16,609		)
Proceeds from sale and leaseback transactions	—			7,300
Excess tax benefit (deficiency) from equity-based compensation	(497		)	8,818
Repurchase of common stock	(102,390		)	(112,162		)
Debt issuance costs	(107		)	(14,092		)
Net cash provided by financing activities	246,004			289,287
Net increase in cash and cash equivalents	22,272			116,113
Cash and cash equivalents at beginning of period	803,632			632,784
Cash and cash equivalents at end of period	$	825,904		$	748,897
Supplemental disclosures
Cash payments for:
Interest, net of capitalized interest	$	26,025		$	3,851
Income taxes paid, net of refunds	$	(18,169	)	$	95,135

The accompanying Notes are an integral part of these Condensed Financial Statements.

4

Notes to Condensed Financial Statements

(unaudited)

1. Basis of Presentation

The accompanying unaudited condensed financial statements include the accounts of Spirit Airlines, Inc. (the Company). These unaudited condensed financial statements reflect all normal recurring adjustments that management believes are necessary to fairly present the financial position, results of operations and cash flows of the Company for the respective periods presented. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission for Form 10-Q. These unaudited interim condensed financial statements should be read in conjunction with the audited financial statements of the Company and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2015 filed with the Securities and Exchange Commission on February 17, 2016.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect both the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates.

The interim results reflected in the unaudited condensed financial statements are not necessarily indicative of the results that may be expected for other interim periods or for the full year.

Certain prior period amounts have been reclassified to conform to the current year's presentation.

2. Recent Accounting Developments

Revenue from Contracts with Customers

In May 2014, the Financial Accounting Standards Board (the FASB) issued Accounting Standards Update (ASU) No. 2014-09, (ASU 2014-09), "Revenue from Contracts with Customers." The objective of ASU 2014-09 is to establish a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. ASU 2014-09 will supersede most of the existing revenue recognition guidance, including industry-specific guidance. The core principle of ASU 2014-09 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 applies to all contracts with customers except those that are within the scope of other topics in the FASB Accounting Standards Codification. The new guidance is effective for the Company in the first quarter of 2018. Early adoption is permitted, but not before the first quarter of 2017. Entities have the option to use either a full retrospective or modified approach to adopt ASU 2014-09. The Company is currently evaluating the new guidance and has neither determined the full impact this standard may have on its financial statements nor decided upon the planned method of adoption. While the Company is still evaluating the impact, it expects the accounting for its frequent flier program to be impacted as ASU 2014-09 will no longer allow use of the incremental cost method when recording revenue related to the Company's loyalty programs. The Company also expects the classification and timing of recognition of certain ancillary fees to be impacted by adoption of ASU 2014-09.

Financial Instruments

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10).” ASU 2016-01 makes several modifications to Subtopic 825-10 including the elimination of the available-for-sale classification of equity investments, and requires equity investments with readily determinable fair values to be measured at fair value with changes in fair value recognized in net income. ASU 2016-01 is effective for interim and annual periods beginning after December 15, 2017 and is not expected to have a material impact on the Company’s financial statements.

Leases

In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)." This standard will require all leases with durations greater than twelve months to be recognized on the balance sheet and is effective for the Company in the first quarter of 2019, with early adoption permitted. The Company is currently evaluating the new guidance and believes adoption of this standard will have a significant impact on its balance sheets although adoption is not expected to significantly change the

5

Notes to Condensed Financial Statements—(Continued)

recognition, measurement or presentation of lease expenses within the statements of operations and cash flows. See Note 8, Commitments and Contingencies for information regarding the Company's undiscounted future lease payments and the timing of those payments.

Share-Based Compensation

In March 2016, the FASB issued ASU No. 2016-09, "Improvements to Employee Share-Based Payment Accounting," which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification on the statement of cash flows. The new guidance is effective for the Company in the first quarter of 2017, with early adoption permitted. The Company is in the process of evaluating the impact of adoption of this guidance on its financial statements.

3. Special Charges

During the three months ended September 30, 2016, the Company purchased three A319 aircraft which were formerly financed under operating lease agreements. The purchase price for the 3 aircraft was $58.8 million, comprised of a cash payment of $58.1 million and the application of security deposits held by the previous lessor of $0.7 million. The Company estimated the fair value of the aircraft to be $38.2 million and has recorded the 3 purchased aircraft within flight equipment on the condensed balance sheets. The Company determined the valuation of the aircraft based on a third-party appraisal considering the condition of each aircraft (a Level 3 measurement). The Company recognized $7.4 million as a cost of terminating the leases within special charges on the condensed statement of operations, made up of the excess of the purchase price paid over the fair value of the aircraft, less previously expensed supplemental rent and other non-cash items of $13.2 million.

During the nine months ended September 30, 2016, the Company purchased six A319 aircraft which were formerly financed under operating lease agreements. The purchase price for the 6 aircraft was $124.7 million, comprised of cash payments of $91.9 million and the application of maintenance and security deposits held by the previous lessors of $32.8 million. The Company estimated the fair value of the aircraft to be $79.4 million and has recorded the 6 purchased aircraft within flight equipment on the condensed balance sheets. The Company determined the valuation of the aircraft based on a third-party appraisal considering the condition of each aircraft (a Level 3 measurement). The Company recognized $31.6 million as a cost of terminating the leases within special charges on the condensed statement of operations, made up of the excess of the purchase price paid over the fair value of the aircraft, less previously expensed supplemental rent and other non-cash items of $13.7 million.

6

Notes to Condensed Financial Statements—(Continued)

4. Earnings per Share

The following table sets forth the computation of basic and diluted earnings per common share:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
	(in thousands, except per share amounts)
Numerator
Net income	$	81,382	$	97,114	$	216,386	$	242,820
Denominator
Weighted-average shares outstanding, basic	69,727		71,738		70,689		72,432
Effect of dilutive stock awards	81		146		143		248
Adjusted weighted-average shares outstanding, diluted	69,808		71,884		70,832		72,680
Net income per share
Basic earnings per common share	$	1.17	$	1.35	$	3.06	$	3.35
Diluted earnings per common share	$	1.17	$	1.35	$	3.05	$	3.34
Anti-dilutive weighted-average shares	122		57		87		47

5. Investment Securities

The Company's investment securities consist of available-for-sale asset-backed securities with contractual maturities of twelve months or less. These securities are stated at fair value within current assets on the Company's balance sheet. Realized gains and losses on sales of investments, if any, are reflected in nonoperating income (expense) in the statements of operations. Unrealized gains and losses on investment securities are reflected as a component of accumulated other comprehensive income, (AOCI).

During the third quarter of 2016, the Company invested $100 million in available-for-sale investment securities, earning interest income at a weighted-average fixed rate of approximately 1.2%. For the three and nine months ended September 30, 2016, an unrealized gain of $4 thousand, net of deferred taxes of $3 thousand, was recorded within AOCI related to these investment securities. The Company has not recognized any realized gains or losses related to these securities as the Company has not transacted any sales of these securities.

6. Accrued Liabilities

Other current liabilities as of September 30, 2016 and December 31, 2015 consist of the following:

	September 30, 2016		December 31, 2015
	(in thousands)
Salaries and wages	$	45,696	$	34,123
Federal excise and other passenger taxes and fees payable	41,452		38,254
Aircraft maintenance	39,393		21,688
Airport obligations	36,788		30,849
Interest payable	14,796		12,355
Fuel	11,225		7,084
Aircraft and facility lease obligations	11,117		24,014
Other	17,312		14,362
Other current liabilities	$	217,779	$	182,729

7

Notes to Condensed Financial Statements—(Continued)

7. Financial Instruments and Risk Management

As part of the Company’s risk management program, the Company from time to time may use a variety of financial instruments to reduce its exposure to fluctuations in the price of jet fuel and interest rates. The Company does not hold or issue derivative financial instruments for trading purposes.

The Company is exposed to credit losses in the event of nonperformance by counterparties to these financial instruments. The Company periodically reviews and seeks to mitigate exposure to the financial deterioration and nonperformance of any counterparty by monitoring absolute exposure levels, credit ratings, and historical performance of counterparties relating to derivative transactions. The credit exposure related to these financial instruments is limited to the fair value of contracts in a net receivable position at the reporting date. The Company also maintains security agreements that require the Company to post collateral if the value of selected instruments falls below specified mark-to-market thresholds. The Company records financial derivative instruments at fair value, which includes an evaluation of each counterparty's credit risk.

Fuel Derivative Instruments

The Company's fuel derivative contracts generally consist of United States Gulf Coast jet fuel swaps (jet fuel swaps) and United States Gulf Coast jet fuel options (jet fuel options). Both jet fuel swaps and jet fuel options are used at times to protect the refining price risk between the price of crude oil and the price of refined jet fuel and to manage the risk of increasing fuel prices. Fair value of the instruments is determined using standard option valuation models.

The Company accounts for its fuel derivative contracts at fair value and recognizes them in the balance sheet in prepaid expenses and other current assets or other current liabilities. The Company did not enter into any fuel derivative instruments during the three and nine months ended September 30, 2016. The Company did not elect hedge accounting on any fuel derivative instruments entered into during the three and nine months ended September 30, 2015 and, as a result, changes in the fair value of these fuel derivative contracts are recorded in aircraft fuel expense. During the three and nine months ended September 30, 2016, the Company did not pay any premiums to acquire jet fuel options. During the three and nine months ended September 30, 2015, the Company paid $0.3 million and $2.5 million in premiums to acquire jet fuel options, respectively.

The following table summarizes the components of aircraft fuel expense for the three and nine months ended September 30, 2016 and 2015:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
	(in thousands)
Into-plane fuel cost	$	121,844	$	114,081	$	321,018	$	349,549
Realized losses (gains) related to fuel derivative contracts, net	—		1,736		—		8,575
Unrealized losses (gains) related to fuel derivative contracts, net	—		82		—		(1,892		)
Aircraft fuel	$	121,844	$	115,899	$	321,018	$	356,232

Any premiums and settlements received or paid on fuel derivative contracts are reflected in the accompanying statements of cash flows in net cash provided by operating activities.

As of September 30, 2016 and December 31, 2015, the Company did not have any outstanding fuel derivatives and had no fuel hedging activity for the three and nine months ended September 30, 2016.

Interest Rate Swaps

During 2015, the Company settled six forward interest rate swaps that were designed to fix the benchmark interest rate component of interest payments on the debt related to three Airbus A321 aircraft, which the Company took delivery of during the third quarter of 2015. These instruments limited the Company's exposure to changes in the benchmark interest rate in the period from the trade date through the date of maturity. The interest rate swaps were designated as cash flow hedges. The Company accounts for interest rate swaps at fair value and recognizes them in the balance sheet in prepaid expenses and other current assets or other current liabilities with changes in fair value recorded within accumulated other comprehensive income (AOCI). As of September 30, 2016 and December 31, 2015, the Company did not have any outstanding interest rate swaps.

8

Notes to Condensed Financial Statements—(Continued)

Realized gains and losses from cash flow hedges are recorded in the statement of cash flows as a component of cash flows from operating activities. Subsequent to the issuance of each debt instrument, amounts remaining in AOCI are amortized over the life of the fixed-rate debt instrument. For the three and nine months ended September 30, 2016, there were no unrealized gains or losses recorded within AOCI related to these instruments as they settled in 2015. For the three and nine months ended September 30, 2015, an unrealized loss of $0.6 million and $0.9 million, net of deferred taxes of $0.3 million and $0.5 million, respectively, was recorded within AOCI related to these instruments. For the three and nine months ended September 30, 2016, the Company reclassified interest rate swap losses of $56 thousand and $170 thousand, net of tax of $32 thousand and $97 thousand, into earnings, respectively. For the three and nine months ended September 30, 2015, the Company reclassified interest rate swap losses of $25 thousand, net of tax of $15 thousand, into earnings. As of September 30, 2016 and December 31, 2015, $1.4 million and $1.5 million, net of tax, remained in AOCI related to these instruments.

8. Commitments and Contingencies

Aircraft-Related Commitments and Financing Arrangements

The Company’s contractual purchase commitments consist primarily of aircraft and engine acquisitions through manufacturers and aircraft leasing companies. As of September 30, 2016, the Company's aircraft orders consisted of the following:

	Airbus			Third-Party Lessor
	A320ceo	A320neo	A321ceo	A320neo	Total
remainder of 2016	—	—	1	5	6
2017	4	—	11	—	15
2018	5	4	5	—	14
2019	1	12	—	—	13
2020	—	16	—	—	16
2021	—	18	—	—	18
	10	50	17	5	82

On April 27, 2016, the Company entered into an amendment to the Airbus A320 Family Purchase Agreement, by and between the Company and Airbus S.A.S., dated May 5, 2004 (Airbus Amendment) which included the conversion of ten Airbus A321neo orders to Airbus A320neo orders. The Company also has four spare engine orders for V2500 SelectOneengines with International Aero Engines (IAE) and nine spare engine orders for PurePower PW1100G-JM engines with Pratt & Whitney. Spare engines are scheduled for delivery from 2016 through 2023. Purchase commitments for these aircraft and spare engines, including estimated amounts for contractual price escalations and pre-delivery payments, are estimated to be approximately $104 million for the remainder of 2016, $659 million in 2017, $650 million in 2018, $679 million in 2019, $823 million in 2020, and $803 million in 2021 and beyond. The Company has secured debt financing commitments of $38.7 million for 1 aircraft scheduled for delivery in the remainder of 2016 and $38.5 million for 1 aircraft scheduled for delivery in 2017. See Note 10, Long-Term Debt - 2015-1 EETCs. In addition, the Company has secured financing for five aircraft to be leased directly from a third party, scheduled for delivery in 2016. The Company does not have financing commitments in place for the remaining 75 Airbus aircraft currently on firm order, which are scheduled for delivery in 2017 through 2021.

Interest commitments related to the secured debt financing of 13 delivered aircraft as of September 30, 2016 are approximately $16.1 million for the remainder of 2016, $40.6 million in 2017, $36.8 million in 2018, $33.3 million in 2019, $29.7 million in 2020, and $118.3 million in 2021 and beyond. For principal commitments related to these financed aircraft, refer to Note 10, Long-Term Debt. Principal and interest commitments related to the Company's future secured debt financing of 2 undelivered aircraft as of September 30, 2016 are approximately $1.6 million for the remainder of 2016, $11.6 million in 2017, $8.1 million in 2018, $7.4 million in 2019, $7.1 million in 2020, and $65.7 million in 2021 and beyond.

As of September 30, 2016, the Company had a fleet consisting of 89 A320 family aircraft. During the nine months ended September 30, 2016, the Company took delivery of ten aircraft financed under secured debt arrangements and purchased six previously leased aircraft. For further discussion on the six previously leased aircraft, refer to Note 3, Special Charges. These aircraft are capitalized within flight equipment and generally have depreciable lives of 25 years and estimated residual values of 10%. As of September 30, 2016, the Company had 55 aircraft and 11 spare engines financed under operating leases with

9

Notes to Condensed Financial Statements—(Continued)

lease term expiration dates ranging from 2017 to 2029. The Company entered into sale and leaseback transactions with third-party aircraft lessors for the majority of these aircraft and engine leases. Deferred losses resulting from these sale and leaseback transactions are included in other long-term assets on the accompanying balance sheet. Deferred losses are recognized as an increase to rent expense on a straight-line basis over the term of the respective operating leases. Deferred gains are included in deferred credits and other long-term liabilities on the accompanying balance sheet. Deferred gains are recognized as a decrease to rent expense on a straight-line basis over the term of the respective operating leases.

Under the terms of the lease agreements, the Company will continue to operate and maintain the aircraft. Payments under the majority of the lease agreements are fixed for the term of the lease. The lease agreements contain standard termination events, including termination upon a breach of the Company's obligations to make rental payments and upon any other material breach of the Company's obligations under the leases, and standard maintenance and return condition provisions. These return provisions are evaluated at inception of the lease and throughout the lease terms and are accounted for as supplemental rent expense when it is probable that such amounts will be incurred. Upon a termination of the lease due to a breach by the Company, the Company would be liable for standard contractual damages, possibly including damages suffered by the lessor in connection with remarketing the aircraft or while the aircraft is not leased to another party.

Future minimum lease payments under noncancellable operating leases with initial or remaining terms in excess of one year at September 30, 2016 were as follows:

		Operating Leases
		Aircraft and Spare Engine Leases		Property Facility Leases		Total Operating Lease Obligations
	(in thousands)
remainder of 2016		$	50,986	$	10,824	$	61,810
2017		194,607		34,988		229,595
2018		177,717		34,714		212,431
2019		158,818		30,312		189,130
2020		150,842		19,111		169,953
2021 and thereafter		520,857		60,513		581,370
Total minimum lease payments		$	1,253,827	$	190,462	$	1,444,289

Aircraft rent expense consists of all minimum lease payments under the terms of the Company's aircraft and spare engine lease agreements recognized on a straight-line basis. Aircraft rent expense also includes supplemental rent. Supplemental rent is made up of maintenance reserves paid or expected to be paid to aircraft lessors in advance of the performance of major maintenance activities that are not probable of being reimbursed and probable return condition obligations. The Company expects supplemental rent to increase as individual aircraft lease agreements approach their respective termination dates and the Company begins to accrue the estimated cost of return conditions for the corresponding aircraft.

Some of the Company’s master lease agreements provide that the Company pay maintenance reserves to aircraft lessors to be held as collateral in advance of the Company’s required performance of major maintenance activities. Substantially all of these maintenance reserve payments are calculated based on a utilization measure, such as flight hours or cycles, while some maintenance reserve payments are fixed contractual amounts. Fixed maintenance reserve payments for these aircraft and related flight equipment, including estimated amounts for contractual price escalations, are expected to be $1.8 million for the remainder of 2016, $6.6 million in 2017, $5.6 million in 2018, $4.2 million in 2019, $3.9 million in 2020, and $10.2 million in 2021 and beyond. These lease agreements provide that maintenance reserves are reimbursable to the Company upon completion of the maintenance event in an amount equal to either (1) the amount of the maintenance reserves held by the lessor associated with the specific maintenance event or (2) the qualifying costs related to the specific maintenance event. Some of the master lease agreements do not require that the Company pay maintenance reserves so long as the Company's cash balance does not fall below a certain level. As of September 30, 2016, the Company was in full compliance with those requirements and does not anticipate having to pay reserves related to these master leases in the future.

In July 2015, the Company executed an upgrade service agreement with Airbus Americas Customer Services Inc. (Airbus) to reconfigure the seating and increase capacity in 40 of the Company’s existing A320 aircraft from 178 to 182 seats (reconfiguration). The reconfiguration of the aircraft commenced in the first quarter of 2016 and is expected to be completed during the fourth quarter of 2017. The cost of the reconfiguration is expected to be approximately $0.6 million per aircraft and purchase commitments for the reconfiguration kits are estimated to be approximately $5.0 million for the remainder of 2016, $8.7 million in 2017 and nonethereafter.

10

Notes to Condensed Financial Statements—(Continued)

In September 2015, the Company executed a lease agreement with Wayne County Airport Authority (the Authority), which owns and operates Detroit Metropolitan Wayne County Airport (DTW). Under the lease agreement, the Company leases a 10-acre site, adjacent to the airfield at DTW, in order to construct, operate and maintain an approximately 126,000-square-foot hangar facility (the project). The project allows for the development of a maintenance hangar in order to fulfill the requirements of the Company's growing fleet and to reduce dependence on third-party facilities and contract line maintenance. The lease agreement has a 30-year term with 210-year extension options. Upon termination of the lease, ownership will automatically pass to the Authority. The Company estimates it will complete the project during the fourth quarter of 2016 at a cost of approximately $32 million. The Company will depreciate all capitalized costs related to the project over the lesser of the useful life of the asset or the lease term.

The Company is contractually obligated to pay the following minimum guaranteed payments for its reservation system, data center and advertising media as of September 30, 2016: $1.4 million for the remainder of 2016, $5.2 million in 2017, $3.8 million in 2018, $0.2 million in 2019, $0.2 million in 2020, and $0.0 million in 2021 and beyond. The Company's current agreement with its reservation system provider expires in 2018.

Litigation

The Company is subject to commercial litigation claims and to administrative and regulatory proceedings and reviews that may be asserted or maintained from time to time. The Company believes the ultimate outcome of such lawsuits, proceedings and reviews will not, individually or in the aggregate, have a material adverse effect on its financial position, liquidity or results of operations.

Credit Card Processing Arrangements

The Company has agreements with organizations that process credit card transactions arising from the purchase of air travel, baggage charges, and other ancillary services by customers. As is standard in the airline industry, the Company's contractual arrangements with credit card processors permit them, under certain circumstances, to retain a holdback or other collateral, which the Company records as restricted cash, when future air travel and other future services are purchased via credit card transactions. The required holdback is the percentage of the Company's overall credit card sales its credit card processors hold to cover refunds to customers if the Company fails to fulfill its flight obligations.

The Company's credit card processors do not require the Company to maintain cash collateral if the Company satisfies certain liquidity and other financial covenants. Failure to meet these covenants would provide the processors the right to place a holdback, resulting in a commensurate reduction of unrestricted cash. As of September 30, 2016 and December 31, 2015, the Company was in compliance with such liquidity and other financial covenants in its credit card processing agreements, and the processors were holding back no remittances.

The maximum potential exposure to cash holdbacks by the Company's credit card processors, based upon advance ticket sales and $9 Fare Club memberships as of September 30, 2016 and December 31, 2015, was $281.4 million and $250.2 million, respectively.

Employees

The Company has 4 union-represented employee groups that together represented approximately 72% of all employees at September 30, 2016. The table below sets forth the Company's employee groups and status of the collective bargaining agreements as of September 30, 2016.

Employee Groups	Representative	Amendable Date	Percentage of Workforce
Pilots	Air Line Pilots Association, International (ALPA)	August 2015	26%
Flight Attendants	Association of Flight Attendants (AFA-CWA)	May 2021	42%
Dispatchers	Transport Workers Union (TWU)	August 2018	1%
Ramp Service Agents	International Association of Machinists and Aerospace Workers (IAMAW)	June 2020	3%

In March 2016, under the supervision of the National Mediation Board (NMB), the Company and AFA-CWA reached a tentative agreement for a five-year contract with the Company's flight attendants. In May 2016, the flight attendants voted to approve the new five-year contract with the Company. In connection with this agreement, the Company paid a $9.6 million ratification incentive payment to the flight attendants recorded within salaries, wages and benefits in the statement of operations.

11

Notes to Condensed Financial Statements—(Continued)

In August 2015, the Company's collective bargaining agreement with its pilots, represented by ALPA, became amendable. In June 2016, ALPA requested the services of the National Mediation Board (NMB) to facilitate negotiations for an amended agreement and the Company joined ALPA in the request. The NMB has assigned a mediator and the parties continue to meet and work toward a new agreement with the guidance of the mediator. Under the RLA, the parties' current agreement remains in effect until an amended agreement is reached.

In July 2014, certain ramp service agents directly employed by the Company voted to be represented by the IAMAW. In May 2015, the Company entered into a five-year interim collective bargaining agreement with the IAMAW, covering material economic terms. In June 2016, the Company and the IAMAW reached an agreement on the remaining terms of the collective bargaining agreement, which is amendable in June 2020. As of September 30, 2016, ramp service agents represented by the IAMAW service 1 of the 56 airports where the Company operates.

The Company is self-insured for health care claims, up to a stop loss amount for eligible participating employees and qualified dependent medical claims, subject to deductibles and limitations. The Company’s liabilities for claims incurred but not reported are determined based on an estimate of the ultimate aggregate liability for claims incurred. The estimate is calculated from actual claim rates and adjusted periodically as necessary. The Company has accrued $4.6 million and $3.7 million in health care claims as of September 30, 2016 and December 31, 2015, respectively.

9. Fair Value Measurements

Under ASC 820, Fair Value Measurements and Disclosures, disclosures relating to how fair value is determined for assets and liabilities are required, and a hierarchy for which these assets and liabilities must be grouped is established, based on significant levels of inputs, as follows:

Level 1—Quoted prices in active markets for identical assets or liabilities.

Level 2—Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company utilizes several valuation techniques in order to assess the fair value of the Company’s financial assets and liabilities.

Fuel Derivative Instruments

From time to time, the Company may enter into fuel derivative contracts in order to mitigate the risk of future volatility in fuel prices. The Company’s fuel derivative contracts generally consist of jet fuel swaps and jet fuel options. These instruments are valued using energy and commodity market data, which is derived by combining raw inputs with quantitative models and processes to generate forward curves and volatilities.

The Company utilizes the market approach to measure fair value for its fuel derivative instruments, if any. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.

The Company does not elect hedge accounting on its fuel derivative instruments. As a result, the Company records the fair value adjustment of its fuel derivatives in the accompanying statement of operations within aircraft fuel and on the balance sheet within prepaid expenses and other current assets or other current liabilities, depending on whether the net fair value of the derivatives is in an asset or liability position as of the respective date. Fair values of the fuel derivative instruments are determined using standard option valuation models. The Company also considers counterparty risk and its own credit risk in its determination of all estimated fair values. The Company offsets fair value amounts recognized for derivative instruments executed with the same counterparty under a master netting arrangement. The Company determines fair value of jet fuel options utilizing an option pricing model based on inputs that are either readily available in public markets or can be derived from information available in publicly quoted markets. The Company has consistently applied these valuation techniques in all periods presented and believes it has obtained the most accurate information available for the types of derivative contracts it holds.

12

Notes to Condensed Financial Statements—(Continued)

The fair value of the Company's jet fuel swaps is determined based on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets; therefore, the Company categorizes these instruments as Level 2. Due to the fact that certain inputs utilized to determine the fair value of jet fuel options are unobservable (principally implied volatility), the Company categorizes these derivatives as Level 3. Implied volatility of a jet fuel option is the volatility of the price of the underlying commodity that is implied by the market price of the option based on an option pricing model. Thus, it is the volatility that when used in a particular pricing model yields a theoretical value for the option equal to the current market price of that option. Implied volatility, a forward-looking measure, differs from historical volatility because the latter is calculated from known past returns. At each balance sheet date, the Company substantiates and adjusts unobservable inputs. The Company routinely assesses the valuation model's sensitivity to changes in implied volatility. Based on the Company's assessment of the valuation model's sensitivity to changes in implied volatility, it concluded that holding other inputs constant, a significant increase (decrease) in implied volatility would result in a significantly higher (lower) fair value measurement for the Company's aircraft fuel derivatives. As of September 30, 2016 and December 31, 2015, the Company had no outstanding fuel derivatives.

Long-Term Debt

The estimated fair value of the Company's non-publicly held debt agreements has been determined to be Level 3, as certain inputs used to determine the fair value of these agreements are unobservable. The Company utilizes a discounted cash flow method to estimate the fair value of the Level 3 long-term debt. The estimated fair value of the Company's publicly held debt agreements has been determined to be Level 2, as the Company utilizes quoted market prices to estimate the fair value of its public long-term debt.

The carrying amounts and estimated fair values of the Company's long-term debt at September 30, 2016 and December 31, 2015 were as follows:

	September 30, 2016				December 31, 2015
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value		Fair value level hierarchy
	(in millions)
Senior long-term debt	$	460.1	$	477.4	$	484.2	$	477.8	Level 3
Junior long-term debt	48.9		50.5		54.3		54.6		Level 3
Class A enhanced equipment trust certificates	394.8		402.7		95.8		94.8		Level 2
Class B enhanced equipment trust certificates	104.5		106.1		25.0		25.2		Level 2
Total long-term debt	$	1,008.3	$	1,036.7	$	659.3	$	652.4

Cash and Cash Equivalents

Cash and cash equivalents at September 30, 2016 and December 31, 2015 are comprised of liquid money market funds and cash, and are categorized as Level 1 instruments. The Company maintains cash with various high-quality financial institutions.

Investment Securities

Investment securities at September 30, 2016 are comprised of short-term available-for-sale securities and are categorized as Level 1 instruments, as the Company uses quoted market prices in active markets when determining the fair value of these securities. As of December 31, 2015, the Company had no outstanding investment securities.

Assets and liabilities measured at gross fair value on a recurring basis are summarized below:

13

Notes to Condensed Financial Statements—(Continued)

	Fair Value Measurements as of September 30, 2016
	Total		Level 1		Level 2		Level 3
	(in millions)
Cash and cash equivalents	$	825.9	$	825.9	$	—	$	—
Investment securities	$	100.1	$	100.1	$	—	$	—
Total assets	$	926.0	$	926.0	$	—	$	—
Total liabilities	$	—	$	—	$	—	$	—

	Fair Value Measurements as of December 31, 2015
	Total		Level 1		Level 2		Level 3
	(in millions)
Cash and cash equivalents	$	803.6	$	803.6	$	—	$	—
Total assets	$	803.6	$	803.6	$	—	$	—
Total liabilities	$	—	$	—	$	—	$	—

The Company had no transfers of assets or liabilities between any of the above levels during the periods ended September 30, 2016 and December 31, 2015.

The Company's Valuation Group, which reports to the Chief Financial Officer, is made up of individuals from the Company's Treasury and Corporate Accounting departments. The Valuation Group is responsible for the execution of the Company's valuation policies and procedures. The Valuation Group compares the results of the Company's internally developed valuation methods with counterparty reports at each balance sheet date, assesses the Company's valuation methods for accurateness and identifies any needs for modification.

10. Long-Term Debt

As of September 30, 2016, the Company has issued non-public and public debt instruments. The Company's indebtedness includes the 2014 Framework Agreement, the 2015 Facility Agreements and the 2015-1 EETCs, as defined in the Company's Form 10-K for the year ended December 31, 2015.

2015-1 EETCs

In August 2015, the Company created two separate pass-through trusts, which issued approximately $576.6 million aggregate face amount of Series 2015-1 Class A and Class B enhanced equipment trust certificates (EETCs) in connection with the financing of 15 aircraft. Each class of certificates represents a fractional undivided interest in the respective pass-through trusts and is not an obligation of the Company. The proceeds from the issuance of these certificates are initially held in escrow by a depositary and, upon satisfaction of certain terms and conditions, are released and used to purchase equipment notes which are issued by the Company and secured by the Company's aircraft. As of September 30, 2016, $499.3 million of the proceeds from the sale of the 2015-1 EETCs had been used to purchase equipment notes in connection with the financing of 3 Airbus A320 aircraft and 10 Airbus A321 aircraft. The remaining two aircraft are scheduled for delivery between November 2016 and January 2017.

The Company evaluated whether the pass-through trusts formed are variable interest entities (VIEs) required to be consolidated by the Company under applicable accounting guidance. The Company determined that the pass-through trusts are VIEs and that it does not have a variable interest in the pass-through trusts. Based on this analysis, the Company determined that it is not required to consolidate these pass-through trusts.

Long-term debt is comprised of the following:    

14

Notes to Condensed Financial Statements—(Continued)

	As of				Three Months Ended September 30,				Nine Months Ended September 30,
	September 30, 2016		December 31, 2015		2016		2015		2016		2015
	(in millions)				(weighted-average interest rates)
Fixed-rate senior term loans due through 2027	$	460.1	$	484.2	4.10	%	4.10	%	4.10	%	4.10	%
Fixed-rate junior term loans due through 2022	48.9		54.3		6.90	%	6.90	%	6.90	%	6.90	%
Fixed-rate class A enhanced equipment trust certificates due through 2028	394.8		95.8		4.03	%	N/A		4.03	%	N/A
Fixed-rate class B enhanced equipment trust certificates due through 2024	104.5		25.0		4.38	%	N/A		4.38	%	N/A
Long-term debt	$	1,008.3	$	659.3
Less current maturities	84.4		49.6
Less unamortized discounts, net	29.1		13.0
Total	$	894.8	$	596.7

During the three and nine months ended September 30, 2016, the Company made scheduled principal payments of $10.0 million and $29.6 million on its outstanding debt obligations, respectively. During the three and nine months ended September 30, 2015, the Company made scheduled principal payments of $7.6 million and $15.8 million on its outstanding debt obligations, respectively.

At September 30, 2016, long-term debt principal payments for the next five years and thereafter were as follows:

	September 30, 2016
	(in millions)
remainder of 2016	$	34.7
2017	84.6
2018	80.4
2019	79.1
2020	77.3
2021 and thereafter	652.2
Total debt principal payments	$	1,008.3

Interest Expense

Interest expense related to long-term debt consisted of the following:

	Three Months Ended September 30				Nine Months Ended September 30,
	2016		2015		2016		2015
	(in thousands)
Senior term loans	$	4,917	$	4,639	$	14,929	$	10,260
Junior term loans	879		926		2,721		2,023
Class A enhanced equipment trust certificates	3,538		—		7,419		—
Class B enhanced equipment trust certificates	1,015		—		2,124		—
Commitment fees	32		—		97		—
Amortization of debt discounts	979		340		2,289		729
Total	$	11,360	$	5,905	$	29,579	$	13,012

15

Notes to Condensed Financial Statements—(Continued)

11. Subsequent Events

In October 2016, the Company took delivery of two A320neos, the first US based carrier to take delivery and service such aircraft. These aircraft are financed under operating lease agreements.

16

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), which are subject to the “safe harbor” created by those sections. Forward-looking statements are based on our management’s beliefs and assumptions and on information currently available to our management. All statements other than statements of historical factors are “forward-looking statements” for purposes of these provisions. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “project,” “predict,” “potential,” and similar expressions intended to identify forward-looking statements. Such forward-looking statements are subject to risks, uncertainties and other important factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those identified below, and those discussed in the section titled “Risk Factors” in this report and in Item 1A "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2015 and subsequent Quarterly Reports on Form 10-Q. Furthermore, such forward-looking statements speak only as of the date of this report. Except as required by law, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.

Overview

Spirit Airlines is an ultra low-cost, low-fare airline that offers affordable travel to price-conscious customers. Our all-Airbus Fit Fleet^TM, the youngest fleet of any major U.S. airline, currently operates more than 400 daily flights to 56 destinationsin the United States, Caribbean and Latin America. Our stock trades on the NASDAQ Global Select Stock Market under the symbol "SAVE."

Our ultra low-cost carrier, or ULCC, business model allows us to compete principally by offering customers our Bare Fares^TM, which are unbundled base fares that remove components traditionally included in the price of an airline ticket. We then give customers Frill Control^TM, which provides customers the freedom to save by paying only for the options they choose such as bags, advance seat assignments and refreshments. We record revenue related to these options in our financial statements as non-ticket revenue.

We are focused on price-sensitive travelers who pay for their own travel, and our business model is designed to deliver what we believe our customers want: low fares. We aggressively use low fares to address an underserved market, which helps us to increase passenger volume, load factors and non-ticket revenue on the flights we operate. We also have high-density seating configurations on our aircraft and a simplified onboard product designed to lower costs, which is part of our Plane Simple^TM strategy. High passenger volumes and load factors help us sell more ancillary products and services, which in turn allows us to reduce the base fare we offer even further. We strive to be recognized by our customers and potential customers as the low-fare leader in the markets we serve.

We compete based on total price. We believe other airlines have used an all-inclusive pricing concept to effectively maintain higher total prices to consumers, rather than lowering fares by unbundling each product or service. For example, carriers that tout “free bags” have included the cost of checking bags in the total ticket price, which does not allow passengers to see how much they would save if they did not check luggage. We believe that we and our customers benefit when we allow our customers to know the total price of their travel by breaking out the cost of optional products or services.

We allow our customers to see all available options and their respective prices prior to purchasing a ticket, and this full transparency illustrates that our total price, including options selected, is lower than other airlines on average. Through branded campaigns, we educate the public on how our unbundled pricing model works, showing them how it gives them choice on how they spend their money and saves them money compared to other airlines.

17

Comparative Operating Statistics:

The following tables set forth our operating statistics for the three and nine-month periods ended September 30, 2016 and 2015:

	Three Months Ended September 30,				Percent Change
	2016		2015
Operating Statistics (unaudited) (A):
Average aircraft	87.4		74.6		17.2	%
Aircraft at end of period	89		76		17.1	%
Average daily aircraft utilization (hours)	12.3		12.8		(3.9	)%
Average stage length (miles)	968		983		(1.5	)%
Block hours	98,586		88,045		12.0	%
Departures	38,310		34,032		12.6	%
Passenger flight segments (PFSs) (thousands)	5,674		4,776		18.8	%
Revenue passenger miles (RPMs) (thousands)	5,599,370		4,768,692		17.4	%
Available seat miles (ASMs) (thousands)	6,507,204		5,597,997		16.2	%
Load factor (%)	86.0	%	85.2	%	0.8 pts
Average ticket revenue per passenger flight segment ($)	58.34		66.96		(12.9	)%
Average non-ticket revenue per passenger flight segment ($)	51.17		53.39		(4.2	)%
Total revenue per passenger flight segment ($)	109.51		120.35		(9.0	)%
Average yield (cents)	11.10		12.05		(7.9	)%
TRASM (cents)	9.55		10.27		(7.0	)%
CASM (cents)	7.47		7.46		0.1	%
Adjusted CASM (cents)	7.35		7.45		(1.3	)%
Adjusted CASM ex-fuel (cents)	5.48		5.39		1.7	%
Fuel gallons consumed (thousands)	78,288		67,684		15.7	%
Average economic fuel cost per gallon ($)	1.56		1.71		(8.8	)%

(A) See "Glossary of Airline Terms" elsewhere in this quarterly report for definitions used in this table.

18

	Nine Months Ended September 30,				Percent Change
	2016		2015
Operating Statistics (unaudited) (A):
Average aircraft	84.1		71.1		18.3	%
Aircraft at end of period	89		76		17.1	%
Average daily aircraft utilization (hours)	12.6		12.8		(1.6	)%
Average stage length (miles)	978		982		(0.4	)%
Block hours	290,529		248,941		16.7	%
Departures	111,495		95,240		17.1	%
Passenger flight segments (PFSs) (thousands)	16,268		13,271		22.6	%
Revenue passenger miles (RPMs) (thousands)	16,219,093		13,267,314		22.2	%
Available seat miles (ASMs) (thousands)	18,909,627		15,540,759		21.7	%
Load factor (%)	85.8	%	85.4	%	0.4 pts
Average ticket revenue per passenger flight segment ($)	55.32		67.96		(18.6	)%
Average non-ticket revenue per passenger flight segment ($)	51.85		54.24		(4.4	)%
Total revenue per passenger flight segment ($)	107.17		122.20		(12.3	)%
Average yield (cents)	10.75		12.22		(12.0	)%
TRASM (cents)	9.22		10.43		(11.6	)%
CASM (cents)	7.33		7.93		(7.6	)%
Adjusted CASM (cents)	7.15		7.93		(9.8	)%
Adjusted CASM ex-fuel (cents)	5.45		5.63		(3.2	)%
Fuel gallons consumed (thousands)	225,851		187,541		20.4	%
Average economic fuel cost per gallon ($)	1.42		1.91		(25.7	)%

(A) See "Glossary of Airline Terms" elsewhere in this quarterly report for definitions used in this table.

Executive Summary

For the third quarter of 2016, we achieved a 21.8% operating margin, a decrease of 5.5 points compared to the prior year period. We generated pre-tax income of $128.0 million and net income of $81.4 million on operating revenues of $621.3 million. For the third quarter of 2015, we generated pre-tax income of $154.4 million and net income of $97.1 million on operating revenues of $574.8 million.

For the third quarter of 2016, our CASM increased slightly to 7.47 cents. Excluding special charges, loss on disposal of assets and unrealized losses and gains resulting from our fuel derivatives, our adjusted CASM ex-fuel for the third quarter of 2016 was 5.48 cents, a 1.7%increase year over year. This increase was primarily due to increases in salaries, wages and benefits expense and maintenance, materials and repairs expense partially offset by a decrease in aircraft rent expense per ASM. The increase in salaries, wages and benefits expense was due to an increase in incentive compensation expense resulting from improved metric performance, year over year, as well as an increase in wages for flight attendants resulting from the contract negotiated in the second quarter of 2016. The increase in maintenance costs was due to higher aircraft repair expense as well as increased number and cost of scheduled maintenance events in the current period as compared to the prior year period. The decrease in aircraft rent expense per ASM was due to our newer aircraft being purchased under secured debt financing rather than being leased through operating leases, as is the case with the older aircraft in our fleet. Additionally, we purchased six previously leased aircraft during 2016 and negotiated several lease extensions during the year which contributed to lower aircraft rent expense per ASM.

As of September 30, 2016, we had 89 Airbus A320-family aircraft in our fleet comprised of 29 A319s, 45 A320s, and 15 A321s. With the scheduled delivery of 6 aircraft during the remainder of 2016, we expect to end 2016 with 95 aircraft in our fleet.

Comparison of three months ended September 30, 2016 to three months ended September 30, 2015

19

Operating Revenues

Operating revenues increased $46.5 million, or 8.1%, to $621.3 million for the third quarter of 2016, as compared to the third quarter of 2015, due primarily to an increase in traffic of 17.4%, mostly offset by lower passenger yields as a result of continued competitive pressures from major U.S. carriers aggressively discounting fare prices in the current period.

Total revenue per available seat mile (TRASM) for the third quarter of 2016 was 9.55 cents, a decrease of 7.0%, compared to the third quarter of 2015. Total revenue per passenger flight segment decreased 9.0%, year over year, primarily driven by a decrease of 12.9% in ticket revenue per passenger flight segment. These decreases were driven by a 7.9% decrease in average yield, period over period, as a result of competitive pressures noted above during the current period. Although a decrease in average yield was noted period over period, there was a sequential improvement in the rate of decline.

Our non-ticket revenue per passenger flight segment declined to a lesser extent, by 4.2%, mostly resulting from the competitive pressures noted above. Our unbundled model provides a more stable revenue stream as demonstrated during periods of lower passenger ticket yields. The decrease in non-ticket revenue per passenger flight segment was primarily attributable to lower bag and change fee revenue per flight segment.

Operating Expenses

Operating expenses increased $68.5 million, or 16.4%, to $486.1 million for the third quarter of 2016 compared to $417.6 million for the third quarter of 2015. This increase is primarily due to a 16.2% growth in capacity.

Aircraft fuel expense includes into-plane fuel expense (defined below) and realized and unrealized gains and losses associated with our fuel derivative contracts. Into-plane fuel expense is defined as the price that we generally pay at the airport, including taxes and fees. Into-plane fuel prices are affected by the global oil market, refining costs, taxes and fees, which can vary by region in the United States and other countries where we operate. Into-plane fuel expense approximates cash paid to the supplier and does not reflect the effect of our fuel derivatives. We had no activity related to fuel derivative instruments during the nine months ended September 30, 2016. Management chose not to elect hedge accounting on any fuel derivative instruments during 2015 and, as a result, changes in the fair value of those fuel derivative contracts are recorded each period in aircraft fuel expense.

Aircraft fuel expense increased in the third quarter of 2016 by $5.9 million, or 5.1%, compared to $115.9 million in the third quarter of 2015, due primarily to a 15.7% increase in fuel gallons consumed, partially offset by an 8.8% decrease in average economic fuel price per gallon.

The elements of the changes in aircraft fuel expense are illustrated in the following table:

	Three Months Ended September 30,
	2016		2015
	(in thousands, except per gallon amounts)				Percent Change
Fuel gallons consumed	78,288		67,684		15.7	%
Into-plane fuel cost per gallon	$	1.56	$	1.69	(7.7	)%
Into-plane fuel expense	121,844		114,081		6.8	%
Realized losses (gains) related to fuel derivative contracts, net	—		1,736		NM
Unrealized losses (gains) related to fuel derivative contracts, net	—		82		NM
Aircraft fuel expense (per statement of operations)	$	121,844	$	115,899	5.1	%

Gulf Coast Jet indexed fuel is the basis for a substantial majority of our fuel consumption and is impacted by both the price of crude oil as well as increases or decreases in refining margins associated with the conversion of crude oil to jet fuel. The into-plane fuel cost per gallon decrease of 7.7% was primarily a result of a decrease in jet fuel prices.

We track economic fuel expense, which we believe is the best measure of the effect fuel prices are currently having on our business, because it most closely approximates the net cash outflow associated with purchasing fuel used for our operations during the period. We define economic fuel expense as into-plane fuel expense and realized gains or losses on fuel derivative contracts. The key difference between aircraft fuel expense as recorded in our statement of operations and economic fuel expense is unrealized mark-to-market changes in the value of aircraft fuel derivatives outstanding. Many industry analysts evaluate airline results using economic fuel expense and it is used in our internal management reporting.

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The elements of the changes in economic fuel expense are illustrated in the following table:

	Three Months Ended September 30,
	2016		2015
	(in thousands, except per gallon amounts)				Percent Change
Into-plane fuel expense	$	121,844	$	114,081	6.8	%
Realized losses (gains) related to fuel derivative contracts, net	—		1,736		NM
Economic fuel expense	$	121,844	$	115,817	5.2	%
Fuel gallons consumed	78,288		67,684		15.7	%
Economic fuel cost per gallon	$	1.56	$	1.71	(8.8	)%

During the three months endedSeptember 30, 2016, we had no activity related to fuel derivatives and thus had no realized or unrealized losses (gains) related to fuel derivative contracts, as we have in prior periods. During the three months ended September 30, 2015, we paid $0.3 million in premiums to acquire jet fuel options. Total realized loss recognized for fuel derivatives that expired during the third quarter of 2015 was $1.7 million. Total realized losses include cash paid for premiums in previous periods which expired during the three months endedSeptember 30, 2015. We had $0.1 million in unrealized losses related to our outstanding fuel derivatives during the three months endedSeptember 30, 2015.

From time to time, we may enter into fuel derivative contracts to protect the refining price risk between the price of crude oil and the price of refined jet fuel. As of September 30, 2016, we had no outstanding fuel derivatives.

We measure our operating cost performance on a per-ASM basis, since one ASM is the unit of production of an airline’s capacity. The following table presents our cost per ASM, or unit cost, for the three months ended September 30, 2016 and 2015, followed by explanations of the material changes on a dollar basis and/or unit cost basis:

	Three Months Ended September 30,		Per-ASM Change		Percent Change
	2016	2015
	(in cents, except for percentages)
Aircraft fuel	1.87	2.07	(0.20	)	(9.7	)%
Salaries, wages, and benefits	1.85	1.70	0.15		8.8	%
Aircraft rent	0.76	0.96	(0.20	)	(20.8	)%
Landing fees and other rents	0.60	0.62	(0.02	)	(3.2	)%
Distribution	0.39	0.41	(0.02	)	(4.9	)%
Maintenance, materials and repairs	0.47	0.38	0.09		23.7	%
Depreciation and amortization	0.39	0.35	0.04		11.4	%
Other operating	1.02	0.97	0.05		5.2	%
Loss on disposal of assets	0.01	0.01	—		NM
Special charges (credits)	0.11	—	0.11		NM
CASM	7.47	7.46	0.01		0.1	%
Adjusted CASM (1)	7.35	7.45	(0.10	)	(1.3	)%
Adjusted CASM ex-fuel (2)	5.48	5.39	0.09		1.7	%

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(1) Reconciliation of CASM to Adjusted CASM:

	Three Months Ended September 30,
	2016			2015
	(in millions)		Per ASM	(in millions)			Per ASM
CASM (cents)			7.47				7.46
Less:
Unrealized losses (gains) related to fuel derivative contracts, net	$	—	—	$	0.1		—
Loss on disposal of assets	0.4		0.01	0.3			0.01
Special charges (credits)	7.4		0.11	(0.1		)	—
Adjusted CASM (cents)			7.35				7.45

(2) Excludes aircraft fuel expense, loss on disposal of assets and special charges.

Our adjusted CASM ex-fuel for the third quarter of 2016 was up1.7% as compared to the third quarter of 2015. The increase on a per-ASM basis was primarily a result of an increase in salaries, wages and benefits expense and maintenance, materials and repairs expense partially offset by a decrease in aircraft rent expense per ASM. The increase in salaries, wages and benefits expense was due to an increase in incentive compensation expense resulting from improved metric performance, year over year, as well as an increase in wages for flight attendants resulting from the contract negotiated in the second quarter of 2016. The increase in maintenance costs was due to higher aircraft repair expense as well as increased number and cost of scheduled maintenance events in the current period as compared to the prior year period. The decrease in aircraft rent expense per ASM was due to our newer aircraft being purchased under secured debt financing rather than being leased through operating leases, as is the case with the older aircraft in our fleet. Additionally, we purchased six previously leased aircraft during 2016 and negotiated several lease extensions during the year which contributed to lower aircraft rent per ASM.

Labor costs for the third quarter of 2016increased $25.1 million, or 26.4%, compared to the third quarter of 2015, primarily driven by a 16.6%increase in our pilot and flight attendant workforce resulting from the introduction of 13 new aircraft since the third quarter of 2015. On a per-ASM basis, labor costs increased due to an increase in incentive compensation expense resulting from improved metric performance, year over year, as well as an increase in wages for flight attendants resulting from the contract negotiated in the second quarter of 2016.

Aircraft rent expense for the third quarter of 2016decreased by $4.2 million, or 7.8%, compared to the third quarter of 2015. The decrease in aircraft rent expense was primarily driven by the purchase of six previously leased aircraft completed during the nine months ended September 30, 2016. For further discussion on these purchases, please see "Notes to Condensed Financial Statements - 3. Special Charges." Additionally, we negotiated several lease extensions during 2016 which contributed to lower aircraft rent. On a per-ASM basis, aircraft rent expense decreased due to a change in the composition of our aircraft fleet between leased aircraft (for which rent expense is recorded under aircraft rent) and purchased aircraft (for which depreciation expense is recorded under depreciation and amortization). Since the prior year period, we have taken delivery of 13 purchased aircraft, which increased capacity but had no effect on aircraft rent expense, as these assets are being depreciated over their useful life. Had the respective aircraft been leased, the change in rent expense, on both a dollar and per-ASM basis, would have been greater than the increase currently experienced in depreciation and amortization as result of these purchases.  

Landing fees and other rents for the third quarter of 2016increased $4.8 million, or 13.8%, as compared to the third quarter of 2015, primarily due to a 12.6%increase in departures. On a per-ASM basis, landing fees and other rents decreased due to scale benefits from increased volume at our airports.

Distribution costs increased by $2.5 million, or 10.8%, in the third quarter of 2016 as compared to the third quarter of 2015. The increase on a dollar basis was primarily due to increased sales volume. On a per-ASM basis, distribution costs decreased slightly primarily due to lower average fare resulting in a decrease in credit card fees year over year.

Maintenance, materials and repairs expense for the third quarter of 2016increased by $9.0 million, or 41.8%, compared to the third quarter of 2015. The increase in maintenance costs on both a dollar and per-ASM basis was due to higher aircraft repair expense as well as increased number and cost of scheduled maintenance events in the current period as compared to the prior year period. In addition, the timing and mix of maintenance events resulted in higher cost events in the current year period as compared to the prior year period. We expect maintenance expense, on a dollar basis, to increase as our fleet continues to grow and age, resulting in the need for additional and more frequent repairs over time.

We account for heavy maintenance under the deferral method. Under the deferral method, the cost of heavy maintenance is capitalized and amortized as a component of depreciation and amortization expense in the statement of operations until the

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earlier of the next heavy maintenance event or end of the lease term, if applicable. The amortization of heavy maintenance costs was $10.1 million and $11.3 million for the third quarters of 2016 and 2015, respectively. As our fleet continues to age, we expect that the amount of deferred heavy maintenance events will increase and will result in an increase in the amortization of those costs. If heavy maintenance events were amortized within maintenance, materials, and repairs expense in the statement of operations, our maintenance, materials, and repairs expense would have been $40.5 million and $32.8 million for the third quarters of 2016 and 2015, respectively.

Depreciation and amortization increased by $5.7 million, or 28.9%, compared to the prior year period. The increase on both a dollar and per-ASM basis was primarily due to depreciation expense resulting from the purchase of 13 new aircraft and the purchase of 6 previously rented aircraft since the third quarter of 2015.

Other operating expense for the third quarter of 2016increased by $12.1 million, or 22.4%, compared to the third quarter of 2015 due primarily to an increase in overall operations. As compared to the prior year period, we increased departures by 12.6% and had 18.8% more passenger flight segments, which drove increases in variable operating expenses. Additionally, the increase on both a dollar and per-ASM basis is due to higher effective ground handling rates and labor hours consumed at certain airports on a year-over-year basis, driven by both labor market conditions and a desire to improve customer experience.

Special charges for the three months ended September 30, 2016 consisted primarily of $7.4 million in lease termination charges recognized in connection with the purchase of 3 aircraft formerly financed under operating lease agreements. The amount recorded as lease termination charges represents the excess of the purchase price paid over the appraised fair value of the aircraft, less previously expensed supplemental rent and other non-cash items of $13.2 million. For further discussion on these purchases, please see "Notes to Condensed Financial Statements - 3. Special Charges."

Other Income (Expenses)

Our interest expense and corresponding capitalized interest for the three months ended September 30, 2016 and 2015 primarily represents interest related to the financing of purchased aircraft. As of September 30, 2016 and 2015, the Company had 28 and 15 purchased aircraft financed through secured long-term debt arrangements, respectively. Please see "Notes to Condensed Financial Statements - 10. Long-term Debt" for further discussion.

Our interest income for the three months ended September 30, 2016 primarily represents interest income earned on short-term investments and on funds required to be held in escrow in accordance with the terms of our EETC.

Income Taxes

Our effective tax rate for the third quarter of 2016 was 36.4% compared to 37.1% for the third quarter of 2015. In arriving at these rates, we considered a variety of factors, including our forecasted full-year pre-tax results, the U.S. federal rate of 35%, expected nondeductible expenses, and estimated state income taxes. We evaluate our tax rate each quarter and make adjustments when necessary. Our final effective tax rate for the full year is dependent on the level of pre-tax income and the magnitude of any nondeductible expenses in relation to the respective pre-tax income.

Comparison of nine months ended September 30, 2016 to nine months ended September 30, 2015

Operating Revenues

Operating revenues increased $122.0 million, or 7.5%, to $1,743.6 million for the nine months ended September 30, 2016, compared to the prior year period, due primarily to an increase in traffic of 22.2%, partially offset by lower passenger yields.

TRASM for the nine months ended September 30, 2016 was 9.22 cents, a decrease of 11.6% compared to the same period of 2015. This decrease was primarily driven by a 12.0% decrease in average yield, period over period, due to lower fares driven by continued competitive pressures, as well as our growth in new and mature markets.

Total revenue per passenger flight segment decreased 12.3% from $122.20 for the nine months ended September 30, 2015 to $107.17 for the nine months ended September 30, 2016. Our average ticket fare per passenger flight segment decreased from $67.96 to $55.32, or 18.6%, compared to the prior year period, and non-ticket revenue per passenger flight segment decreased from $54.24 to $51.85, or 4.4%, compared to the prior year period. The decrease in non-ticket revenue per passenger flight segment was primarily attributable to lower bag revenue year over year.

Operating Expenses

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Operating expenses increased for the nine months ended September 30, 2016 by $152.4 million, or 12.4%, compared to the same period for 2015 primarily due to our 21.7% capacity growth and $31.6 million of special charges for aircraft lease terminations, offset by a 9.9% decrease in aircraft fuel expense resulting from lower fuel prices per gallon, as compared to the prior year period.

Aircraft fuel expense for the nine months ended September 30, 2016decreased $35.2 million, or 9.9%, compared to the prior year period primarily as a result of a 25.7% decrease in economic fuel price per gallon and a decrease of $6.7 million in net realized and unrealized losses from fuel derivatives, offset by a 20.4% increase in fuel gallons consumed year over year.

The elements of the changes in aircraft fuel expense are illustrated in the following table:

	Nine Months Ended September 30,
	2016		2015
	(in thousands, except per gallon amounts)					Percent Change
Fuel gallons consumed	225,851		187,541			20.4	%
Into-plane fuel cost per gallon	$	1.42	$	1.86		(23.7	)%
Into-plane fuel expense	$	321,018	$	349,549		(8.2	)%
Realized losses (gains) related to fuel derivative contracts, net	—		8,575			NM
Unrealized losses (gains) related to fuel derivative contracts, net	—		(1,892		)	NM
Aircraft fuel expense (per statement of operations)	$	321,018	$	356,232		(9.9	)%

The elements of the changes in economic fuel expense are illustrated in the following table:

	Nine Months Ended September 30,
	2016		2015
	(in thousands, except per gallon amounts)				Percent Change
Into-plane fuel expense	$	321,018	$	349,549	(8.2	)%
Realized losses (gains) related to fuel derivative contracts, net	—		8,575		NM
Economic fuel expense	$	321,018	$	358,124	(10.4	)%
Fuel gallons consumed	225,851		187,541		20.4	%
Economic fuel cost per gallon	$	1.42	$	1.91	(25.7	)%

During the nine months ended September 30, 2016, we had no activity related to fuel derivatives and thus had no realized or unrealized losses (gains) related to fuel derivative contracts, as we have in prior periods. During the nine months ended September 30, 2015, we paid $2.5 million in premiums to acquire jet fuel options. Total realized loss recognized for fuel derivatives that expired during the nine months ended 2015 was $8.6 million. Total realized losses included cash paid for premiums in previous periods of $9.2 million, which expired in the nine months ended September 30, 2015, and cash received for settlement of fuel derivatives during the nine months ended September 30, 2015 of $0.6 million.We had $1.9 million in unrealized gains related to our outstanding fuel derivatives during the nine months ended September 30, 2015.

As of September 30, 2016, we had no outstanding fuel derivatives.

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We measure our operating cost performance on a per-ASM basis, since one ASM is the unit of production of an airline’s capacity. The following table presents our cost per-ASM, or unit cost, for the nine months ended September 30, 2016 and 2015, followed by explanations of the material changes on a unit cost basis and/or dollar basis:

	Nine Months Ended September 30,		Per-ASM Change		Percent Change
	2016	2015
	(in cents, except for percentages)
Aircraft fuel	1.70	2.29	(0.59	)	(25.8	)%
Salaries, wages, and benefits	1.85	1.81	0.04		2.2	%
Aircraft rent	0.80	1.03	(0.23	)	(22.3	)%
Landing fees and other rents	0.60	0.63	(0.03	)	(4.8	)%
Distribution	0.39	0.42	(0.03	)	(7.1	)%
Maintenance, materials and repairs	0.38	0.40	(0.02	)	(5.0	)%
Depreciation and amortization	0.39	0.33	0.06		18.2	%
Other operating	1.05	1.00	0.05		5.0	%
Loss on disposal of assets	0.01	0.01	—		NM
Special charges (credits)	0.17	—	0.17		NM
CASM	7.33	7.93	(0.60	)	(7.6	)%
Adjusted CASM (1)	7.15	7.93	(0.78	)	(9.8	)%
Adjusted CASM ex-fuel (2)	5.45	5.63	(0.18	)	(3.2	)%

(1) Reconciliation of CASM to Adjusted CASM:

	Nine Months Ended September 30,
	2016			2015
	(in millions)		Per ASM	(in millions)			Per ASM
CASM (cents)			7.33				7.93
Less:
Unrealized losses (gains) related to fuel derivative contracts, net	$	—	—	$	(1.9	)	(0.01	)
Loss on disposal of assets	1.2		0.01	1.3			0.01
Special charges (credits)	31.6		0.17	0.7			—
Adjusted CASM (cents)			7.15				7.93

(2) Excludes aircraft fuel expense, loss on disposal of assets and special charges and credits.

Our adjusted CASM ex-fuel for the nine months ended September 30, 2016decreased by 3.2% as compared to the same period in 2015. The decrease on a per-ASM basis was primarily a result of a decrease in aircraft rent expense per ASM due to our newer aircraft being purchased under secured debt financing rather than being leased through operating leases, as is the case with the older aircraft in our fleet. In addition, we purchased six previously leased aircraft during the nine months ended September 30, 2016 which contributed to lower aircraft rent per ASM.

Labor costs for the nine months ended September 30, 2016increased $68.4 million, or 24.3%, compared to the same period in 2015. The increase was primarily driven by a 25.2%increase in our pilot and flight attendant workforce resulting from the introduction of 13 new aircraft since the end of the third quarter of 2015. On both a dollar and per-ASM basis, labor costs increased as a result of a non-recurring ratification incentive in the amount of $8.4 million recorded during the first quarter of 2016, related to the five-year collective bargaining agreement with our flight attendants, as well as an increase in wages for our flight attendants resulting from the contract negotiations. In addition, incentive compensation expense increased as a result of improved metric performance, year over year. Scale benefits from overall growth as well as larger gauge aircraft and a decrease in our group health care costs partially offset the increase noted on a per-ASM basis.

Aircraft rent expense for the nine months ended September 30, 2016decreased by $8.0 million, or 5.0%, compared to the same period in 2015. The decrease in aircraft rent expense was primarily driven by the purchase of six previously leased aircraft made during the nine months ended September 30, 2016. For further discussion on these purchases, please see "Notes to Condensed Financial Statements - 3. Special Charges." Additionally, we negotiated several lease extensions during 2016 which contributed to lower aircraft rent. On a per-ASM basis, aircraft rent expense decreased due to a change in the composition of

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our aircraft fleet between leased aircraft (for which rent expense is recorded under aircraft rent) and purchased aircraft (for which depreciation expense is recorded under depreciation and amortization). Since the prior year period, we have taken delivery of 13 purchased aircraft, which increased capacity but had no effect on aircraft rent expense, as these assets are being depreciated over their useful life. Had the respective aircraft been leased, the change in rent expense, on both a dollar and per-ASM basis, would have been greater than the increase currently experienced in depreciation and amortization as result of these purchases.  

Landing fees and other rents for the nine months ended September 30, 2016increased $15.6 million, or 15.8%, as compared to the same period in 2015 primarily due to a 17.1%increase in departures. On a per-ASM basis, landing fees and other rents decreased due to scale benefits from increased volume at our airports.

Distribution costs increased by $7.3 million, or 11.0%, for the nine months ended September 30, 2016 as compared to the same period in 2015. The increase was due primarily to increased sales volume. On a per-ASM basis, distribution costs decreased primarily due to lower average fare resulting in a decrease in credit card fees year over year.

Maintenance costs for the nine months ended September 30, 2016increased by $10.1 million, or 16.3%, compared to the prior year period. The increase in maintenance costs on a dollar basis was due to higher aircraft repair expense as well as routine and ongoing maintenance on a growing fleet. On a per-unit basis, our growth outpaced the increase in maintenance costs during the period, as compared to the prior year period. We expect maintenance expense, on a dollar basis, to increase as our fleet continues to grow and age, resulting in the need for additional and more frequent repairs over time.

Depreciation and amortization increased by $21.7 million, or 42.1%, compared to the prior year period. The increase on both a dollar and per-ASM basis was primarily due to depreciation expense resulting from the purchase of 13 new aircraft and the purchase of 6 previously rented aircraft made since the third quarter of 2015.

We account for heavy maintenance under the deferral method. Under the deferral method, the cost of heavy maintenance is capitalized and amortized as a component of depreciation and amortization expense in the statement of operations until the next heavy maintenance event or end of the lease term, if applicable. The amortization of heavy maintenance costs was $33.0 million and $31.0 million for the nine months ended September 30, 2016 and 2015, respectively. As our fleet continues to age, we expect that the amount of deferred heavy maintenance events will increase and will result in an increase in the amortization of those costs. If heavy maintenance events were amortized within maintenance, materials and repairs expense in the statement of operations, our maintenance, materials and repairs expense would have been $105.1 million and $92.9 million for the nine months ended September 30, 2016 and 2015, respectively.

Other operating expense for the nine months ended September 30, 2016increased by $41.8 million, or 26.8%, compared to the prior year period, primarily due to our growth. The outsourcing of ramp service agents at certain stations, completed in the latter part of the second quarter of 2015, also drove increases in other operating expense, on both a dollar and per-ASM basis, year over year. On a per-ASM basis, this increase was offset by lower passenger re-accommodation expense as compared to the prior year period. During 2016, we have improved our operational reliability and achieved new records for on-time performance.

Special charges for the nine months ended September 30, 2016 consisted of $31.6 million in lease termination charges recognized in connection with the purchase of 6 aircraft formerly financed under operating lease agreements. The amount recorded as lease termination charges represents the excess of the purchase price paid over the appraised fair value of the aircraft, less previously expensed supplemental rent and other non-cash items of $13.7 million. For further discussion on these purchases, please see "Notes to Condensed Financial Statements - 3. Special Charges."

Other income (expenses)

Our interest expense and corresponding capitalized interest for the nine months ended September 30, 2016 and 2015 primarily represents interest related to the financing of purchased aircraft. As of September 30, 2016 and 2015, the Company had 28 and 15 purchased aircraft financed through secured long-term debt arrangements, respectively. Please see "Notes to Condensed Financial Statements - 10. Long-term Debt" for further discussion.

Our interest income for the nine months ended September 30, 2016 primarily represents interest income earned on short-term investments and on funds required to be held in escrow in accordance with the terms of our EETC.

Income Taxes

Our effective tax rate for the nine months ended September 30, 2016 was 36.7% compared to 36.8% for the nine months ended September 30, 2015. In arriving at these rates, we considered a variety of factors, including our forecasted full-year pre-

26

tax results, the U.S. federal rate of 35%, expected nondeductible expenses, and estimated state income taxes. We evaluate our tax rate each quarter and make adjustments when necessary. Our final effective tax rate for the full year is dependent on the level of pre-tax income and the magnitude of any nondeductible expenses in relation to the respective pre-tax income.

Liquidity and Capital Resources

Our primary sources of liquidity are cash on hand, cash provided by operations and capital from debt financing. Primary uses of liquidity are for working capital needs, capital expenditures, aircraft and engine pre-delivery deposit payments (PDPs) and maintenance reserves. Our total cash at September 30, 2016 was $825.9 million, an increase of $22.3 million from December 31, 2015.

Currently, our single largest capital need is funding the acquisition costs of our aircraft. Aircraft are acquired through debt financing, sale leaseback transactions, direct leases or cash purchases. In debt financing transactions, capital is needed to make equity investments in capital assets and payments on debt obligations (principal and interest) after the acquisition of the aircraft. During the nine months ended September 30, 2016, we purchased 10 aircraft through debt financing transactions and made $62.6 million in debt payment obligations (principal, interest and fees). The debt entered into in the current period has maturity dates ranging from 2024 to 2028 and interest rates ranging from 4.100% to 4.450%. In sale leaseback transactions, capital is needed to fund the initial purchase of the aircraft prior to the sale to the lessor. During the nine months ended September 30, 2016, we entered into no sale leaseback transactions. During the nine months ended September 30, 2016, we purchased 6 aircraft that were previously financed under operating leases for $124.7 million, comprised of cash payments of $91.9 million and the application of maintenance and security deposits held by the previous lessors of $32.8 million.

PDPs relating to future deliveries under our agreement with Airbus are required at various times prior to each delivery date. During the nine months ended September 30, 2016, we paid $109.3 million of PDPs for future deliveries of aircraft and spare engines. As of September 30, 2016, we had $272.7 million of PDPs on our balance sheet.

As of September 30, 2016, we have secured debt financing commitments for two of the aircraft deliveries that will be received from Airbus through January 2017. An additional five aircraft will be leased directly from a third party. We do not have financing commitments in place for the remaining 75 Airbus aircraft currently on firm order, which are scheduled for delivery between 2017 and 2021. Future aircraft deliveries may be leased or otherwise financed based on market conditions, our prevailing level of liquidity, and capital market availability.

In addition to funding the acquisition of our fleet, we are required to make maintenance reserve payments for some of the aircraft in our current fleet. Maintenance reserves are paid to aircraft lessors and are held as collateral in advance of our performance of major maintenance activities. In the nine months ended September 30, 2016, we paid $43.9 million in maintenance reserves and as of September 30, 2016, we had $285.5 million ($87.1 million in aircraft maintenance deposits and $198.4 million in long-term aircraft maintenance deposits) on our balance sheet.

On October 26, 2015, our Board of Directors authorized a new repurchase program of up to $100 million in aggregate value of shares of our Common Stock, par value $0.0001 per share, from time to time in open market or privately negotiated transactions. As of September 30, 2016, the Company has exhausted repurchases under this program. The timing and amount of any stock repurchase are subject to prevailing market conditions and other considerations.

Net Cash Flows Provided By Operating Activities. Operating activities in the nine months ended September 30, 2016provided$440.0 million in cash compared to $369.0 millionprovided in the nine months ended September 30, 2015. The increase is mainly driven by higher revenues, lower cost of fuel, and a $65.0 million income tax refund during the current period. This increase was offset by higher salary, wages and benefits and interest paid (excluding amounts capitalized) on the debt financing of aircraft year over year.

Net Cash Flows Used In Investing Activities. In the nine months ended September 30, 2016, investing activities used$663.8 million, compared to $542.2 millionused in the prior year period. The increase was mainly driven by the purchase of available-for-sale short term investment securities of $100 million made during the third quarter of 2016. In addition, there was an increase in paid PDPs, net of refunds, driven by timing of future aircraft deliveries. During the nine months ended September 30, 2016, our main investing activities were $408.1 million in expenditures for flight equipment consisting primarily of the purchase of 10 new aircraft, 6 previously leased aircraft and rotable equipment. During the nine months ended September 30, 2015, our main investing activities were $393.2 million in expenditures for flight equipment primarily for the purchase of 11 new aircraft.

Net Cash Flows Provided By Financing Activities. During the nine months ended September 30, 2016, financing activities provided$246.0 million. We received $378.6 million in connection with the debt financing of 10 aircraft delivered during the

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nine months ended September 30, 2016. We spent $102.4 million to repurchase common stock primarily under our stock repurchase authorization, which became effective in October 2015, and we paid $29.6 million in debt principal payment obligations in the nine months ended September 30, 2016 related to the financing of our aircraft.

Commitments and Contractual Obligations

We have contractual obligations and commitments primarily with regard to future purchases of aircraft and engines, repayment of debt, and lease arrangements. The following table discloses aggregate information about our contractual obligations as of September 30, 2016 and the periods in which payments are due (in millions):

	Remainder of 2016		2017 - 2018		2019 - 2020		2021 and beyond		Total
Long-term debt (1)	$	35	$	165	$	156	$	652	$	1,008
Interest commitments (2)	16		77		63		118		274
Operating lease obligations	62		442		359		581		1,444
Flight equipment purchase obligations	104		1,309		1,503		803		3,719
Other (3)	6		18		1		—		25
Total future payments on contractual obligations	$	223	$	2,011	$	2,082	$	2,154	$	6,470

(1) Includes principal only associated with senior term loans due through 2027, junior term loans due through 2022 and Class A and Class B enhanced equipment trust certificates due through 2028 and 2024, respectively. Please see "Notes to Condensed Financial Statements - 10. Long-term Debt."

(2) Related to senior and junior term loans and Class A and Class B enhanced equipment trust certificates only.

(3) Primarily related to the reconfiguration of seating in 40 of our A320ceos from 178 to 182 seats.

Some of our master lease agreements provide that we pay maintenance reserves to aircraft lessors to be held as collateral in advance of our required performance of major maintenance activities. Some maintenance reserve payments are fixed contractual amounts, while others are based on utilization. In addition to the contractual obligations disclosed in the table above, we have fixed maintenance reserve payments for these aircraft and related flight equipment, including estimated amounts for contractual price escalations, which are approximately $1.8 million for the remainder of 2016, $6.6 million in 2017, $5.6 million in 2018, $4.2 million in 2019, $3.9 million in 2020, and $10.2 million in 2021 and beyond.

In August 2015, we created 2 separate pass-through trusts which issued approximately $576.6 million aggregate face amount of Series 2015-1 Class A and Class B EETCs in connection with the financing of 15 aircraft. The proceeds from the issuance of EETCs are initially held in escrow by a depositary and, upon satisfaction of certain terms and conditions, are released and used to purchase equipment notes which are issued by the Company and secured by the Company's aircraft. As of September 30, 2016, $499.3 million of the proceeds from the sale of the 2015-1 EETCs had been used to purchase equipment notes in connection with the financing of 3 Airbus A320 aircraft and 10 Airbus A321 aircraft.

The remaining two aircraft are scheduled for delivery between November 2016 and January 2017.

Principal and interest commitments related to our future secured debt financing as of September 30, 2016 are approximately $1.6 million for the remainder of 2016, $11.6 million in 2017, $8.1 million in 2018, $7.4 million in 2019, $7.1 million in 2020, and $65.7 million in 2021 and beyond.

We evaluated whether the pass-through trusts formed are variable interest entities (VIEs) required to be consolidated by the Company under applicable accounting guidance. We determined that the pass-through trusts are VIEs and that we do not have a variable interest in the pass-through trusts. As such, we are not required to consolidate these pass-through trusts.

In September 2015, we executed a lease agreement with Wayne County Airport Authority (the Authority), which owns and operates Detroit Metropolitan Wayne County Airport (DTW). Under the lease agreement, we lease a 10-acre site, adjacent to the airfield at DTW, in order to construct, operate and maintain an approximately 126,000-square-foot hangar facility. The lease agreement has a 30-year term with 210-year extension options. Upon termination of the lease, title of the project, which will be fully depreciated, will automatically pass to the Authority. We estimate the project will be completed during the fourth quarter of 2016. Future commitment amounts for the project are included within operating lease obligations in the table above.

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Off-Balance Sheet Arrangements

We have significant lease obligations for our aircraft and spare engines as 55 of our 89 aircraft and all of our 11 spare engines are financed under operating leases and are therefore not reflected on our balance sheets. These leases expire between 2017 and 2029. Aircraft rent payments were $53.5 million and $54.5 million for the three months ended September 30, 2016 and 2015, respectively, and $160.3 million and $163.1 million for the nine months ended September 30, 2016 and 2015, respectively. Our aircraft lease payments for 52 of our aircraft are fixed-rate obligations. Three of our aircraft leases provide for variable rent payments, which fluctuate based on changes in the London Interbank Offered Rate (LIBOR).

Our contractual purchase commitments consist primarily of aircraft and engine acquisitions through manufacturers and aircraft leasing companies. As of September 30, 2016, our aircraft orders consisted of the following:

	Airbus			Third-Party Lessor
	A320ceo	A320neo	A321ceo	A320neo	Total
remainder of 2016	—	—	1	5	6
2017	4	—	11	—	15
2018	5	4	5	—	14
2019	1	12	—	—	13
2020	—	16	—	—	16
2021	—	18	—	—	18
	10	50	17	5	82

We also have four spare engine orders for V2500 SelectOne engines with IAE and nine spare engine orders for PurePower PW1100G-JM engines with Pratt & Whitney. Spare engines are scheduled for delivery from 2016 through 2023. Committed expenditures for these aircraft and spare engines, including estimated amounts for contractual price escalations and aircraft PDPs, are expected to be approximately $104 million for the remainder of 2016, $659 million in 2017, $650 million in 2018, $679 million in 2019, $823 million in 2020 and $803 million in 2021 and beyond.

As of September 30, 2016, we had lines of credit related to corporate credit cards of $23.6 million from which we had drawn $7.3 million.

As of September 30, 2016, we had lines of credit with counterparties for physical fuel delivery and derivatives in the amount of $48.0 million. As of September 30, 2016, we had drawn $10.3 million on these lines of credit. We are required to post collateral for any excess above the lines of credit if the derivatives are in a net liability position and make periodic payments in order to maintain an adequate undrawn portion for physical fuel delivery. As of September 30, 2016, we did not hold any fuel derivatives.

As of September 30, 2016, we had $6.1 million in uncollateralized surety bonds and $25.2 million in unsecured standby letter of credit facilities of which $16.7 million had been drawn upon for issued letters of credit.

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GLOSSARY OF AIRLINE TERMS

Set forth below is a glossary of industry terms:

“Adjusted CASM” means operating expenses, excluding unrealized gains or losses related to fuel derivative contracts, out of period fuel federal excise tax, loss on disposal of assets, and special charges (credits), divided by ASMs.

“Adjusted CASM ex-fuel” means operating expenses excluding aircraft fuel expense, loss on disposal of assets, and special charges (credits), divided by ASMs.

“AFA-CWA” means the Association of Flight Attendants-CWA.

“Air traffic liability” or “ATL” means the value of tickets sold in advance of travel.

“ALPA” means the Airline Pilots Association, International.

“ASIF” means an Aviation Security Infrastructure Fee assessed by the TSA on each airline.

“Available seat miles” or “ASMs” means the number of seats available for passengers multiplied by the number of miles the seats are flown, also referred to as "capacity."

“Average aircraft” means the average number of aircraft in our fleet as calculated on a daily basis.

“Average daily aircraft utilization” means block hours divided by number of days in the period divided by average aircraft.

“Average economic fuel cost per gallon” means total aircraft fuel expense, excluding unrealized gains or losses related to fuel derivative contracts and out of period fuel federal excise tax, divided by the total number of fuel gallons consumed.

“Average non-ticket revenue per passenger flight segment” means the total non-ticket revenue divided by passenger flight segments.

“Average ticket revenue per passenger flight segment” means total passenger revenue divided by passenger flight segments.

“Average stage length” represents the average number of miles flown per flight.

“Average yield” means average operating revenue earned per RPM, calculated as total revenue divided by RPMs.

“Block hours” means the number of hours during which the aircraft is in revenue service, measured from the time of gate departure before take-off until the time of gate arrival at the destination.

“CASM” or “unit costs” means operating expenses divided by ASMs.

“CBA” means a collective bargaining agreement.

“CBP” means United States Customs and Border Protection.

“DOT” means the United States Department of Transportation.

“EPA” means the United States Environmental Protection Agency.

"EETC" means enhanced equipment trust certificate.

“FAA” means the United States Federal Aviation Administration.

“FCC” means the United States Federal Communications Commission.

“GDS” means Global Distribution System (e.g., Amadeus, Galileo, Sabre and Worldspan).

"IAMAW" means the International Association of Machinists and Aerospace Workers.

“Into-plane fuel cost per gallon” means into-plane fuel expense divided by number of fuel gallons consumed.

“Into-plane fuel expense” represents the cost of jet fuel and certain other charges such as fuel taxes and oil.

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“Load factor” means the percentage of aircraft seats actually occupied on a flight (RPMs divided by ASMs).

“NMB” means the National Mediation Board.

“OTA” means Online Travel Agent (e.g., Orbitz and Travelocity).

“Passenger flight segments” or “PFS” means the total number of passengers flown on all flight segments.

“PDP” means pre-delivery deposit payment.

“Revenue passenger mile” or “RPM” means one revenue passenger transported one mile. RPMs equals revenue passengers multiplied by miles flown, also referred to as “traffic.”

“RLA” means the United States Railway Labor Act.

“Total operating revenue per-ASM,” “TRASM” or “unit revenue” means operating revenue divided by ASMs.

“TWU” means the Transport Workers Union of America.

“TSA” means the United States Transportation Security Administration.

“ULCC” means “ultra low-cost carrier.”

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market Risk-Sensitive Instruments and Positions

We are subject to certain market risks, including commodity prices (specifically aircraft fuel) and interest rates. The adverse effects of changes in these markets could pose a potential loss as discussed below. The sensitivity analysis provided below does not consider the effects that such adverse changes may have on overall economic activity, nor does it consider additional actions we may take to mitigate our exposure to such changes. Actual results may differ.

Aircraft Fuel. Our results of operations can vary materially due to changes in the price and availability of aircraft fuel. Aircraft fuel expense for the nine months ended September 30, 2016 and 2015 represented 23.2% and 28.9% of our operating expenses, respectively. Increases in aircraft fuel prices or a shortage of supply could have a material adverse effect on our operations and operating results. We source a significant portion of our fuel from refining resources located in the southeast United States, particularly facilities adjacent to the Gulf of Mexico. Gulf Coast fuel is subject to volatility and supply disruptions, particularly during hurricane season when refinery shutdowns have occurred, or when the threat of weather related disruptions has caused Gulf Coast fuel prices to spike above other regional sources. Both jet fuel swaps and jet fuel options are used at times to protect the refining price risk between the price of crude oil and the price of refined jet fuel, and to manage the risk of increasing fuel prices. Gulf Coast Jet indexed fuel is the basis for a substantial majority of our fuel consumption. Based on our fuel consumption over the last twelve months, a 10% increase in the average price per gallon of aircraft fuel would have increased into-plane aircraft fuel expense by approximately $42.6 million.

As of September 30, 2016 and December 31, 2015, we had no outstanding jet fuel derivatives. We measure our financial derivative instruments at fair value. Fair value of the instruments is determined using standard option valuation models. Changes in the related commodity derivative instrument cash flows may change by more or less than this amount based upon further fluctuations in futures prices. Outstanding financial derivative instruments expose us to credit loss in the event of nonperformance by the counterparties to the agreements. However, we do not expect the counterparties to fail to meet their obligations.

Interest Rates. We have market risk associated with our investment securities, which had a fair market value of $100.1 million as of September 30, 2016. As of December 31, 2015, we had no outstanding investment securities, since we did not purchase them until the third quarter of 2016. We also have market risk associated with changing interest rates due to LIBOR-based lease rates on three of our aircraft. A hypothetical 10% change in interest rates would affect total aircraft rent expense by less than $0.1 million per annum.

Fixed-Rate Debt. As of September 30, 2016, we had $1,008.3 million outstanding in fixed-rate debt related to the purchase of 15 Airbus A320 aircraft and 13 Airbus A321 aircraft which had a fair value of $1,036.7 million. As of December 31, 2015, we had $659.3 million outstanding in fixed-rate debt related to the purchase of 12 Airbus A320 aircraft and 6 Airbus A321 aircraft, which had a fair value of $652.4 million.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and our Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of September 30, 2016. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on the evaluation of our disclosure controls and procedures as of September 30, 2016, our Chief Executive Officer and Chief Financial Officer concluded that, as of such date, our disclosure controls and procedures were effective at the reasonable assurance level.

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Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) during the quarter ended September 30, 2016, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are subject to commercial litigation claims and to administrative and regulatory proceedings and reviews that may be asserted or maintained from time to time. We believe the ultimate outcome of pending lawsuits, proceedings and reviews will not, individually or in the aggregate, have a material adverse effect on our financial position, liquidity, or results of operations.

ITEM 1A. RISK FACTORS

There have been no material changes to the risk factors disclosed in Item 1A Risk Factors contained in our Annual Report on Form 10-K for the year ended December 31, 2015, filed with the Securities and Exchange Commission on February 17, 2016. Investors are urged to review these risk factors carefully.

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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Repurchases of Equity Securities

The following table reflects our repurchases of our common stock during the third quarter of 2016. Repurchases of equity securities during this period include repurchases made from employees who received restricted stock or performance share awards as well as open market repurchases made under our stock repurchase authorization that became effective in October 2015, which authorized the repurchase of up to $100 million of the Company's common stock. All employee stock repurchases were made at the election of each employee pursuant to an offer to repurchase by us. In each case, the shares repurchased constituted the portion of vested shares necessary to satisfy minimum withholding tax requirements.

ISSUER PURCHASES OF EQUITY SECURITIES
Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet be Purchased Under Plans or Programs
July 1-31, 2016	283,204	$	44.75	283,204	$	25,000,056
August 1-31, 2016	461,008	$	40.06	457,562	$	6,660,071
September 1-30, 2016	167,900	$	39.65	167,900	$	74
Total	912,112	$	41.44	908,666

On October 26, 2015, our Board of Directors authorized a repurchase program of up to $100 million in aggregate value of shares of our Common Stock, par value $0.0001 per share, from time to time in open market or privately negotiated transactions. As of September 30, 2016, the Company has exhausted repurchases under this program. The timing and amount of any stock repurchase is subject to prevailing market conditions and other considerations, and may be discontinued at any time.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable

ITEM 5. OTHER INFORMATION

None

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ITEM 6. EXHIBITS

Exhibit Number	Description of Exhibits
10.1	Theodore Botimer Severance and Release Agreement
31.1	Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*	Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation Linkbase
101.LAB	XBRL Taxonomy Extension Label Linkbase
101.PRE	XBRL Taxonomy Extension Presentation Linkbase

* Exhibits 32.1 and 32.2 are being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, nor shall such exhibits be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act or the Exchange Act, except as otherwise specifically stated in such filing.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	SPIRIT AIRLINES, INC.
Date: October 25, 2016	By:	/s/ Edward Christie
		Edward Christie
		Senior Vice President and Chief Financial Officer

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EX-10.1

SEVERANCE AND RELEASE AGREEMENT

This Severance and Release Agreement (sometimes referred to as Agreement) is entered in connection with your decision to receive a severance package offered by Spirit Airlines, Inc. The purpose of this Agreement is to summarize the benefits that will be available to you in return for a release of claims.

RELEASE AND WAIVER

You acknowledge and agree that certain of the payments and benefits described in section A below are contingent on your entering into the Agreement and not revoking (or attempting to revoke) such Agreement during the applicable seven-day revocation period set forth herein. In consideration for the benefits described in this Agreement, you and any person acting by, through, under or on behalf of you, release, waive, and forever discharge Spirit Airlines, Inc. its subsidiaries, affiliates, and related entities (“Spirit or Company”) and all of their respective agents, employees, officers, directors, shareholders, members, managers, employee benefit plans and fiduciaries, insurers, successors, and assigns (also collectively referred to as ‘Released Parties’) from any and all claims, liabilities, actions, demands, obligations, agreements, or proceedings of any kind, individually or as part of a group action, whether known or unknown, arising out of, or connected with, claims of unlawful discrimination, harassment, retaliation (including state and federal whistleblower claims), or failure to accommodate; the terms and conditions of your employment; your compensation and benefits; and/or the termination of your employment, including, but not limited to, all matters in law, in equity, in contract, or in tort, or pursuant to statute, including damages, attorney’s fees, costs and expenses and, without limiting the generality of the foregoing, to all claims arising under the Age Discrimination in Employment Act (ADEA), the Civil Rights Act of 1866, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Employee Retirement Income Security Act (ERISA), the Americans with Disabilities Act, the Railway Labor Act, the Family and Medical Leave Act (FMLA), the Worker Adjustment and Retraining Notification Act, the Florida Civil Rights Act of 1992, or any other federal, state, or local law, statute, or ordinance.

You acknowledge that you have (i) received all compensation due you as a result of services performed for the Company with the receipt of your final paycheck; (ii) reported to the Company any and all work-related injuries or occupational disease incurred by you during your employment by the Company; (iii) been properly provided any leave requested under the FMLA and USERRA or similar state local laws and have not been subjected to any improper treatment, conduct or actions due to a request for or taking such leave; (iv) provided the Company with written notice of any and all concerns regarding suspected ethical and compliance issues or violations on the part of the Company or any other released person or entity; and (v) not filed any complaints, claims, or actions against the Company or any other released person or entity.

A.TERMINATION OF EMPLOYMENT RELATIONSHIP, SEVERANCE BENEFITS AND OBLIGATIONS

Your employment relationship with the Company ended on August 9, 2016 (the “Termination Date”). This is an involuntary separation from service as defined in Treasury Regulation 1.409A. On and after the Termination Date, you will no longer be authorized to transact business or incur any expenses, obligations and liabilities on behalf of the Company. Effective on the Termination Date, your salary, benefits and other entitlements from the Company in respect of services rendered to, or employment with, the Company or any of its Affiliates through and including the Termination Date will end. You agree and acknowledge that you will not be entitled to receive any payments or benefits with respect to or following your termination of employment with the Company other than those described in the following provisions of this section A. You further acknowledge and agree that certain of such payments or benefits exceed the payments and benefits that you would have been entitled to receive had the Company not voluntarily entered into this Agreement. Unless otherwise required by law, effective ten (10) days after the Company has received your signed, unrevoked Agreement, you will receive the following:

1.Severance Pay

You will receive Twelve (12) months of severance pay totaling three hundred six thousand dollars ($306,000) which will be paid to you in equal installments and consistent with past payroll practices. Payments will be made on current payroll pay dates, consisting of the 15^th and the last day of the month. Payments will be direct deposited. These payments will be reduced by any advances or similar outstanding amounts owed to Spirit such as sick days or vacation days used in excess of the number to which you were entitled as of the Termination Date. In addition, all garnishments and levies ordered by any court or other competent authority of which the Company is aware or becomes aware will be withheld. Your payment(s) will be made semi-monthly, and all payments will be subject to the foregoing provisions for the withholding of any federal, state and local taxes as well as any other payments or advances described above. Amounts the Company is paying in consideration for this Agreement will not be treated as compensation for purposes of eligibility or benefits under any benefit plan of the Company.

Any unpaid severance pay due to you hereunder shall be offset, on a dollar-for-dollar basis, by any compensation you may receive from any third party after the Termination Date, provided that compensation you may receive from corporate board service approved by Spirit prior to the Termination Date shall not be subject to offset. To the extent that a federal, state, or local law requires the Company to make a payment to an eligible employee because of involuntary termination of employment or in accordance with a plant closing or advance notice law, including but not limited to the Worker Adjustment and Retraining Notification Act (“WARN”), the severance pay otherwise payable under this Agreement shall be coordinated with and reduced by the amount of any such required payment.

Notwithstanding anything in this Section 1 to the contrary, in the event any payments called for hereunder are determined to constitute payments of “nonqualified deferred compensation” to which Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) is applicable, the following rules shall apply:

(a)    All such payments shall be made on the date that is the first payroll date that occurs on or following the first day of the seventh calendar month following your “separation from service” (as that phrase is used for purposes of Code Section 409A); and

(b)    The first sentence of the second paragraph of this Section 1 (regarding the reduction of payments under this Agreement by reason of any advances or similar outstanding amounts owed by you to Spirit) shall not apply to any payments subject to the requirements of Code Section 409A.

2.Vacation

You will be compensated for accrued unused vacation, the value of which will be paid to you in a lump sum with your final pay. This payment is also subject to all applicable federal (including social security), state and local taxes. Vacation pay will be included as part of your compensation for determining employee or employer contributions to the 401(k) Plan contribution.

3.Unemployment Benefits

You may apply for unemployment benefits upon termination and the state agency makes the determination of your entitlement to benefits. Severance pay can and must be disclosed to appropriate authorities. Treatment of severance pay from the beginning of eligibility for unemployment compensation may vary from state to state.

6.    4.        Employee Assistance Program

Employee Assistance Program Services will continue to be available to you for thirty (30) calendar days following the Termination Date. You may contact our EAP coordinator for more information. The EAP phone number is (888) 267-8126.

7.    5.        Healthcare

You (and your spouse and dependents listed on your healthcare forms at Spirit) shall be eligible for certain continued coverage under the terms of the Consolidated Omnibus Budget Reconciliation Act (Public Law 99-272, Title X, commonly known as “COBRA”). Company shall cover you (and your spouse and dependents if listed on your healthcare forms at Spirit) costs of coverage under COBRA at the same rate as if you remained with the Company for a period equal to the shorter of: (i) twelve (12) months or (ii) the date on which you accept a new position with another employer. If you obtain new employment within twelve months following your termination of employment at Spirit, you must provide notification as provided in section L.

8.    6.        Travel

You (and your eligible travel dependents as indicated in your current Spirit records) shall receive a travel pass on Spirit enabling you and your eligible travel dependents (indicated in your current Spirit records) to travel free of charge in any class of service that is available at the time of reservation for a period equal to the shorter of (i) twelve (12) months or (ii) until (if) you receive similar flight benefits with a new employer.

7    7.        Outplacement service

Spirit will pay for you to participate in the comprehensive mid-level outplacement program offered by Challenger, Gray & Christmas, Inc. for up to a maximum of six months.

B.COOPERATON

You agree to cooperate with the Released Parties regarding any pending or subsequently filed litigation, claims or other disputes involving the Released Parties that relate to matters within your knowledge or responsibility. Without limiting the foregoing, you agree (i) to meet with Released Party’s representatives, its counsel or other designees at mutually convenient times and places with respect to any items within the scope of this provision; (ii) to provide truthful testimony regarding same to any court, agency, or other adjudicatory body; and (iii) to provide the Company with notice of contact by any adverse party or such adverse party’s representative, except as may be required by law. The Company will reimburse you for reasonable expenses in connection with the cooperation described in this paragraph.

C.NON-ADMISSION

This Agreement shall not be construed as an admission by any Released Party of any liability or acts of wrongdoing or unlawful discrimination, nor shall it be considered to be evidence of such liability, wrongdoing, or unlawful discrimination.

D.NON-SOLICITATION OF COMPANY EMPLOYEES

You agree that for a period beginning on the date first written above and ending on the date that is the one-year anniversary of the Termination Date, you will not, directly or indirectly, solicit or attempt to solicit, or hire or cause any person to hire, any of Spirit’s employees or exclusive contractors to work with you or to work for any other entity.

E.NON-DISPARAGEMENT

You agree that you will not engage in any activity which is intended to embarrass, disparage, harass or adversely affect the Company (including its affiliated companies) its officers, employees and directors, or their respective business operations, practices or services, and you agree that you will not make any negative comments about any of the foregoing entities/persons, orally or in writing. The Company will procure that its officers do not engage in any activity which is intended to embarrass, disparage, harass or adversely affect you (other than activity undertaken in connection with efforts to enforce this Agreement) and agrees that these individuals will not make any negative comments about you, orally or in writing.

F.NON-COMPETITION

For a period of twelve (12) months following your termination date, you agree that you will not commence employment with, act as a consultant to, or provide any other assistance to, directly or indirectly, any scheduled passenger airline operating under United States FAA Part 121 as its primary source of revenue with its primary business being the transport of passengers between destinations within the United States. For purposes hereof, “affiliate” shall mean, with respect to any person or entity, any other person or entity controlling, controlled by, or under common control with, such person or entity. This provision may be waived by the Company, in its sole discretion, provided that no such waiver shall be deemed effective unless in writing and signed by an officer of the Company. You acknowledge that this restriction and the non-solicitation restrictions in part D, above, are reasonably necessary to protect the legitimate business interests of the Company, that they are not overbroad, and will not impair your ability to obtain employment commensurate with your abilities. Should the time period of the restrictions or scope in sections D or F be deemed unreasonable or unenforceable by a court of competent jurisdiction, then the court may modify the scope of this Agreement with respect to those restrictions, and all remaining provisions shall remain in full force and effect as written. Should you violate the restrictions in sections D, F, or J, below, the Company may bring an action in state or federal court in Florida, and you expressly consent to jurisdiction and venue in such courts. In addition, for any such action brought by the Company, the parties hereto WAIVE ANY RIGHT TO A TRIAL BY JURY. You further agree that should you violate or threaten to violate the terms of these sections, the Company will suffer irreparable harm and will be entitled to immediate injunctive relief, and have the right to recover any damages it may suffer or attorneys’ fees it may incur as a prevailing party as a result of your breach of these provisions.

G.VOLUNTARY AGREEMENT; ADVICE OF COUNSEL; 45-DAY PERIOD

You acknowledge that:

(a) You have read this Agreement and understand its legal and binding effect. You are acting voluntarily and of your own free will in executing this Agreement.

(b) The consideration for this Agreement is in addition to anything of value to which you already are entitled.

(c) You have had the opportunity to seek, and you are advised in writing by this Agreement to seek, legal counsel prior to signing this Agreement.

(d) You have been given at least 45 days from the date you received this Agreement and any attached information to consider the terms of this Agreement before signing it. In the event you choose to sign this Agreement prior to the expiration of the 45-day consideration period, you represent that you are knowingly and voluntarily waiving the remainder of the 45-day consideration period. You understand that having waived some portion of the 45-day consideration period, the Company may expedite the processing of benefits provided to you in exchange for signing this Agreement.

(e) You agree with the Company that changes, whether material or immaterial, do not restart the running of the 45-day consideration period.

(f) If you are age 40 or over and your termination is part of an employment termination program, you acknowledge that the Company made available to you : (i) the class, unit or group of individuals covered by the employment termination program; the eligibility factors for the program; and applicable time limits; and (ii) the job titles and ages of all individuals eligible or selected for the program as well as those in the same job classification or organizational unit who are not eligible or selected.

H.  REVOCATION

You understand that if you sign this Agreement, you can change your mind and revoke it within seven days after signing it by returning it with written revocation notice to the Company at the address provided in section L below. You understand that this Agreement will not be effective until after this seven-day period has expired, and you will not be entitled to receive any benefits until after the Agreement becomes effective. If the revocation day expires on a weekend or holiday, you understand that you have until the end of the next business day to revoke this Agreement.

I.BINDING AGREEMENT AND PROMISE NOT TO SUE

You understand that following the seven-day revocation period, this Agreement will be final and binding. Except as provided below in Section K, you promise that you will not pursue any claim that you have settled by this Agreement. If you break this promise, you agree to pay all of the Company’s costs and expenses (including reasonable attorneys’ fees) related to the defense of any such claims except this promise not to sue does not apply to claims that you may have under the Older Workers Benefit Protection Act (OWBPA) and the ADEA. Although you are releasing claims that you may have under the OWBPA and the ADEA, you understand that you may challenge the knowing and voluntary nature of this Release under the OWBPA and the ADEA before a court, the Equal Employment Opportunity Commission (EEOC), or any other federal, state or local agency charged with the enforcement of any employment laws.

J. COMPANY PROPERTY; CONFIDENTIALITY

Other than your Company-provided cell phone, you agree to return all Company property immediately to Laurie Villa, VP & Chief Human Resources Officer, Spirit Airlines Inc., 2800 Executive Way, Miramar, FL 33025. You will be permitted to use your Company-provided cell phone for a period of thirty (30) days from your termination date after which it must be returned to the Company (attention Laurie Villa, VP & Chief Human Resources Officer, 2800 Executive Way, Miramar, FL 33025). You represent and warrant that you have returned all confidential information, computer hardware or software, files, papers, memoranda, correspondence, customer lists, financial data, credit cards, keys, tape recordings, pictures, and security access cards, and any other items of any nature which are the property of the Company. You further agree not to retain any tangible or electronic copies of any such property in your possession or under your control.

You agree that you will not use or copy any Company information (oral, electronic or written) records, files, materials, intellectual property or trade secrets of the Company (“Company Information”) for your personal use, or for use by you in a business or for a future employer.To the fullest extent permitted by law, you also agree to retain in confidence any confidential information known to you concerning the Company until such information is publicly available. You further agree to maintain the confidentiality of this Agreement and will not disclose in any fashion the terms of this Agreement or the amount of the severance benefits you receive to any person other than my attorneys, accountants, and tax advisors as required by appropriate taxing authorities, or as otherwise required by law.

K. EXCEPTIONS AND NO INTERFERENCE WITH RIGHTS

You understand this Agreement does not apply to (a) any claims or rights that may arise after the date that you signed this Agreement, (b) the Company’s expense reimbursement policies, (c) any vested rights under the Company’s ERISA-covered employee benefit plans as applicable on the date you sign this Agreement, and (d) any claims that the controlling law clearly states may not be released by private agreement. Moreover, nothing in this Agreement (including but not limited to the release of claims, the promise not to sue, the non-solicitation and non-competition clauses, the confidentiality obligations, and the return of property provision) (a) limits or affects your right to challenge the validity of this Agreement under the ADEA or the OWBPA or (b) prevents you from filing a charge or complaint with or from participating in an investigation or proceeding conducted by the EEOC, the Securities and Exchange Commission, or any other federal, state or local agency charged with the enforcement of any laws, although by signing this Agreement you are waiving your right to recover any individual relief (including any money damages, reinstatement or other legal or equitable relief) in any charge, complaint, or lawsuit or other proceeding brought by you or on your behalf by any third party, except where such a waiver is prohibited. You are also provided notice that under the 2016 Defend Trade Secrets Act (DTSA): (1) noindividual will be held criminally or civilly liable under Federal or State trade secret law for the disclosure of a trade secret (as defined in the Economic Espionage Act) that: (A) is made in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and made solely for the purpose of reporting or investigating a suspected violation of law; or, (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal so that it is not made public; and, (2) an individual who pursues a lawsuit for retaliation by an employer for reporting a suspected violation of the law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal, and does not disclose the trade secret, except as permitted by court order.

L. APPLICABLE LAW, NOTICES AND GENERAL PROVISIONS

This Agreement shall be interpreted under the law of the State of Florida. This Agreement sets forth the entire agreement between the parties. You are not relying on any other agreements or oral representations not fully addressed in this Agreement. Any prior agreements between or directly involving you and the Company are superseded by this Agreement, except this Agreement shall not in any way affect, modify, or nullify any prior agreement you entered into with the Company regarding confidentiality, trade secrets, inventions, or unfair competition. To the extent of any conflict between the terms of this Agreement and the Company’s severance plan, the provisions of this Agreement shall prevail. The provisions of this Agreement are severable, and if any part of this Agreement except the Release and Waiver is found by a court of law to be unenforceable, the remainder of this Agreement will continue to be valid and effective. The headings in this Agreement are provided for reference only and shall not affect the substance of this Agreement.

Receipt of severance pay is conditioned on your representation that you have conducted yourself in an ethical, forthright and honest manner in connection with your work for Spirit. You agree that if you act contrary to the representations and obligations set forth in this Agreement, you may be obligated to pay Spirit an amount equal to the value of the consideration furnished under this Agreement, Spirit shall be entitled to immediately cancel any remaining severance pay owed to you and Spirit may take any other legal action that it deems necessary, except that you are not required to tender back any compensation and your severance pay will not be discontinued if you challenge the knowing and voluntary nature of this Agreement under the OWBPA and ADEA. Nothing in this Agreement is intended to result in any duplication of any payments or benefits to you and under no circumstances shall the Company be required to make or provide duplicate or correspondence payments or benefits to you under this Agreement or any compensation or benefits plans, policies, programs, agreements or arrangements of the Company, including but not limited to the Spirit Airlines, Inc. Executive Severance Plan, dated January 1, 2007, as amended.

Notices to be provided pursuant to this Agreement shall be sent to the following:

Legal Department

Spirit Airlines, Inc.

2800 Executive Way

Miramar, FL 33025

I have read and understand the Agreement set forth above. I accept the consideration stated above and knowingly and voluntarily agree to be bound by the terms of this Agreement.
Dated:	9/26/16	Signature:	/s/ Ted Botimer	Name Printed: Ted Botimer________

Page 1

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Robert L. Fornaro, President and Chief Executive Officer of Spirit Airlines, Inc., certify that:

1. I have reviewed this quarterly report on Form 10-Q of Spirit Airlines, Inc. (the "Registrant");

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as described in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and

5. The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.

Date: October 25, 2016	/s/ Robert L. Fornaro
	Robert L. Fornaro
	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Edward Christie, Senior Vice President and Chief Financial Officer of Spirit Airlines, Inc., certify that:

1. I have reviewed this quarterly report on Form 10-Q of Spirit Airlines, Inc. (the "Registrant");

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as described in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Company’s most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and

5. The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.

Date: October 25, 2016	/s/ Edward M. Christie
	Edward M. Christie
	Senior Vice President and
	Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification of Chief Executive Officer Pursuant to 18 U.S.C. § 1350 As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to 18 U.S.C. § 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of Spirit Airlines, Inc. (the “Company”) hereby certifies, to such officer’s knowledge, that:

(i.) the Quarterly Report on Form 10-Q of the Company for the quarter ended September 30, 2016 (the "Report") fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

(ii.) the information contained in the Report fairly present, in all material respects, the financial condition and results of operations of the Company.

Date: October 25, 2016	/s/ Robert L. Fornaro
	Robert L. Fornaro
	President and Chief Executive Officer

EX-32.2

Exhibit 32.2

Certification of Chief Financial Officer Pursuant to 18 U.S.C. § 1350 As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to 18 U.S.C. § 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of Spirit Airlines, Inc. (the “Company”) hereby certifies, to such officer’s knowledge, that:

(i.) the Quarterly Report on Form 10-Q of the Company for the quarter ended September 30, 2016 (the "Report") fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

(ii.) the information contained in the Report fairly present, in all material respects, the financial condition and results of operations of the Company.

Date: October 25, 2016	/s/ Edward M. Christie
	Edward M. Christie
	Senior Vice President and
	Chief Financial Officer

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 18, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q3
Entity Registrant Name	SPIRIT AIRLINES, INC.
Entity Central Index Key	0001498710
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		69,322,496

XML

Condensed Statements Of Operations (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Operating revenues:
Passenger	$ 331,004	$ 319,812	$ 900,031	$ 901,851
Non-ticket	290,325	255,029	843,574	719,766
Total operating revenues	621,329	574,841	1,743,605	1,621,617
Operating expenses:
Aircraft fuel	121,844	115,899	321,018	356,232
Salaries, wages and benefits	120,190	95,081	349,530	281,175
Aircraft rent	49,367	53,525	151,433	159,440
Landing fees and other rents	39,345	34,577	114,096	98,487
Distribution	25,565	23,074	73,190	65,920
Maintenance, materials and repairs	30,443	21,473	72,010	61,904
Depreciation and amortization	25,304	19,628	73,370	51,630
Other operating	66,277	54,151	197,833	156,071
Loss on disposal of assets	423	290	1,166	1,300
Special charges (credits)	7,355	(76)	31,609	673
Total operating expenses	486,113	417,622	1,385,255	1,232,832
Operating income	135,216	157,219	358,350	388,785
Other (income) expense:
Interest expense	11,362	5,951	29,588	13,182
Capitalized interest	(3,067)	(3,030)	(9,163)	(8,392)
Interest income	(1,222)	(233)	(4,235)	(544)
Other expense	180	166	407	282
Total other (income) expense	7,253	2,854	16,597	4,528
Income before income taxes	127,963	154,365	341,753	384,257
Provision for income taxes	46,581	57,251	125,367	141,437
Net income	$ 81,382	$ 97,114	$ 216,386	$ 242,820
Basic earnings per share (in dollars per share)	$ 1.17	$ 1.35	$ 3.06	$ 3.35
Diluted earnings per share (in dollars per share)	$ 1.17	$ 1.35	$ 3.05	$ 3.34

XML

Condensed Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 81,382	$ 97,114	$ 216,386	$ 242,820
Unrealized gain (loss) on interest rate derivative instruments, net of deferred taxes of $0, ($320), $0 and ($511)	0	(553)	0	(909)
Unrealized gain (loss) on investment securities, net of deferred taxes of $3, $0, $3 and $0	4	0	4	0
Interest rate swap losses reclassified into earnings, net of taxes of $32, $15, $97 and $15	56	25	170	25
Other comprehensive income (loss)	60	(528)	174	(884)
Comprehensive income	$ 81,442	$ 96,586	$ 216,560	$ 241,936

XML

Condensed Statements of Comprehensive Income (Parenthetical) (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
Unrealized gain (loss) on interest rate derivative instruments, tax	$ 0	$ (320)	$ 0	$ (511)
Available-for-sale Securities, Income Tax Expense on Change in Unrealized Holding Gain (Loss)	3	0	3	0
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion, Tax	$ 32	$ 15	$ 97	$ 15

XML

Condensed Balance Sheets (unaudited) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 825,904	$ 803,632
Investment securities	100,083	0
Accounts receivable, net	35,892	28,266
Aircraft maintenance deposits	87,105	73,415
Prepaid income taxes	6,060	72,278
Prepaid expenses and other current assets	48,455	48,749
Total current assets	1,103,499	1,026,340
Property and equipment:
Flight equipment	1,386,310	834,927
Ground property and equipment	109,451	74,814
Less accumulated depreciation	(105,653)	(65,524)
Total property and equipment	1,390,108	844,217
Deposits on flight equipment purchase contracts	272,690	286,837
Long-term aircraft maintenance deposits	198,426	206,485
Deferred heavy maintenance, net	79,878	89,127
Other long-term assets	85,024	77,539
Total assets	3,129,625	2,530,545
Current liabilities:
Accounts payable	29,906	17,043
Air traffic liability	238,793	216,831
Current maturities of long-term debt	84,443	49,637
Other current liabilities	217,779	182,729
Total current liabilities	570,921	466,240
Long-term debt, less current maturities	894,809	596,693
Long-term deferred income taxes	299,231	221,481
Deferred gains and other long-term liabilities	20,108	20,821
Shareholders’ equity:
Common stock	7	7
Additional paid-in-capital	549,375	544,277
Treasury stock, at cost	(218,572)	(116,182)
Retained earnings	1,015,140	798,754
Accumulated other comprehensive loss	(1,394)	(1,546)
Total shareholders’ equity	1,344,556	1,225,310
Total liabilities and shareholders’ equity	$ 3,129,625	$ 2,530,545

XML

Condensed Statements Of Cash Flows (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Operating activities:
Net income	$ 216,386	$ 242,820
Adjustments to reconcile net income to net cash provided by operations:
Unrealized losses on open derivative contracts, net	0	2,239
Losses reclassified from other comprehensive income	267	0
Equity-based compensation	5,503	6,999
Allowance for doubtful accounts	213	7
Amortization of deferred gains and losses	3,837	730
Depreciation and amortization	73,370	51,630
Deferred income tax expense	77,627	63,960
Loss on disposal of assets	1,166	1,300
Lease termination cost	31,609	0
Changes in operating assets and liabilities:
Accounts receivable	(7,840)	(10,374)
Aircraft maintenance deposits	(38,299)	(17,488)
Prepaid income taxes	66,218	0
Long-term deposits and other assets	(43,252)	(44,294)
Accounts payable	(7,044)	2,340
Air traffic liability	21,684	56,960
Other liabilities	38,596	12,161
Net cash provided by operating activities	440,041	368,990
Investing activities:
Proceeds from sale of property and equipment	50	0
Capitalized interest	(7,032)	(2,707)
Pre-delivery deposits for flight equipment, net of refunds	(109,260)	(87,658)
Purchase of investment securities	(100,076)	0
Purchase of property and equipment	(447,455)	(451,799)
Net cash used in investing activities	(663,773)	(542,164)
Financing activities:
Proceeds from issuance of long-term debt	378,569	416,000
Proceeds from stock options exercised	92	32
Payments on debt and capital lease obligations	(29,663)	(16,609)
Proceeds from sale and leaseback transactions	0	7,300
Excess tax benefit (deficiency) from equity-based compensation	(497)	8,818
Repurchase of common stock	(102,390)	(112,162)
Debt issuance costs	(107)	(14,092)
Net cash provided by financing activities	246,004	289,287
Net increase in cash and cash equivalents	22,272	116,113
Cash and cash equivalents at beginning of period	803,632	632,784
Cash and cash equivalents at end of period	825,904	748,897
Cash payments for:
Interest, net of capitalized interest	26,025	3,851
Income taxes paid, net of refunds	$ (18,169)	$ 95,135

XML

Basis of Presentation

9 Months Ended

Sep. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited condensed financial statements include the accounts of Spirit Airlines, Inc. (the Company). These unaudited condensed financial statements reflect all normal recurring adjustments that management believes are necessary to fairly present the financial position, results of operations and cash flows of the Company for the respective periods presented. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission for Form 10-Q. These unaudited interim condensed financial statements should be read in conjunction with the audited financial statements of the Company and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2015 filed with the Securities and Exchange Commission on February 17, 2016.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect both the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates.

The interim results reflected in the unaudited condensed financial statements are not necessarily indicative of the results that may be expected for other interim periods or for the full year.

Certain prior period amounts have been reclassified to conform to the current year's presentation.

XML

Recent Accounting Developments

9 Months Ended

Sep. 30, 2016

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Recent Accounting Developments

Recent Accounting Developments

Revenue from Contracts with Customers

In May 2014, the Financial Accounting Standards Board (the FASB) issued Accounting Standards Update (ASU) No. 2014-09, (ASU 2014-09), "Revenue from Contracts with Customers." The objective of ASU 2014-09 is to establish a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. ASU 2014-09 will supersede most of the existing revenue recognition guidance, including industry-specific guidance. The core principle of ASU 2014-09 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 applies to all contracts with customers except those that are within the scope of other topics in the FASB Accounting Standards Codification. The new guidance is effective for the Company in the first quarter of 2018. Early adoption is permitted, but not before the first quarter of 2017. Entities have the option to use either a full retrospective or modified approach to adopt ASU 2014-09. The Company is currently evaluating the new guidance and has neither determined the full impact this standard may have on its financial statements nor decided upon the planned method of adoption. While the Company is still evaluating the impact, it expects the accounting for its frequent flier program to be impacted as ASU 2014-09 will no longer allow use of the incremental cost method when recording revenue related to the Company's loyalty programs. The Company also expects the classification and timing of recognition of certain ancillary fees to be impacted by adoption of ASU 2014-09.

Financial Instruments

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10).” ASU 2016-01 makes several modifications to Subtopic 825-10 including the elimination of the available-for-sale classification of equity investments, and requires equity investments with readily determinable fair values to be measured at fair value with changes in fair value recognized in net income. ASU 2016-01 is effective for interim and annual periods beginning after December 15, 2017 and is not expected to have a material impact on the Company’s financial statements.

Leases

In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)." This standard will require all leases with durations greater than twelve months to be recognized on the balance sheet and is effective for the Company in the first quarter of 2019, with early adoption permitted. The Company is currently evaluating the new guidance and believes adoption of this standard will have a significant impact on its balance sheets although adoption is not expected to significantly change the recognition, measurement or presentation of lease expenses within the statements of operations and cash flows. See Note 8, Commitments and Contingencies for information regarding the Company's undiscounted future lease payments and the timing of those payments.

Share-Based Compensation

In March 2016, the FASB issued ASU No. 2016-09, "Improvements to Employee Share-Based Payment Accounting," which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification on the statement of cash flows. The new guidance is effective for the Company in the first quarter of 2017, with early adoption permitted. The Company is in the process of evaluating the impact of adoption of this guidance on its financial statements.

XML

Special Charges

9 Months Ended

Sep. 30, 2016

Special Charges and Credits [Abstract]

Special Charges

Special Charges

During the three months ended September 30, 2016, the Company purchased three A319 aircraft which were formerly financed under operating lease agreements. The purchase price for the 3 aircraft was $58.8 million, comprised of a cash payment of $58.1 million and the application of security deposits held by the previous lessor of $0.7 million. The Company estimated the fair value of the aircraft to be $38.2 million and has recorded the 3 purchased aircraft within flight equipment on the condensed balance sheets. The Company determined the valuation of the aircraft based on a third-party appraisal considering the condition of each aircraft (a Level 3 measurement). The Company recognized $7.4 million as a cost of terminating the leases within special charges on the condensed statement of operations, made up of the excess of the purchase price paid over the fair value of the aircraft, less previously expensed supplemental rent and other non-cash items of $13.2 million.

During the nine months ended September 30, 2016, the Company purchased six A319 aircraft which were formerly financed under operating lease agreements. The purchase price for the 6 aircraft was $124.7 million, comprised of cash payments of $91.9 million and the application of maintenance and security deposits held by the previous lessors of $32.8 million. The Company estimated the fair value of the aircraft to be $79.4 million and has recorded the 6 purchased aircraft within flight equipment on the condensed balance sheets. The Company determined the valuation of the aircraft based on a third-party appraisal considering the condition of each aircraft (a Level 3 measurement). The Company recognized $31.6 million as a cost of terminating the leases within special charges on the condensed statement of operations, made up of the excess of the purchase price paid over the fair value of the aircraft, less previously expensed supplemental rent and other non-cash items of $13.7 million.

XML

Earnings per Share

9 Months Ended

Sep. 30, 2016

Earnings Per Share [Abstract]

Earnings per Share

Earnings per Share

The following table sets forth the computation of basic and diluted earnings per common share:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
	(in thousands, except per share amounts)
Numerator
Net income	$	81,382	$	97,114	$	216,386	$	242,820
Denominator
Weighted-average shares outstanding, basic	69,727		71,738		70,689		72,432
Effect of dilutive stock awards	81		146		143		248
Adjusted weighted-average shares outstanding, diluted	69,808		71,884		70,832		72,680
Net income per share
Basic earnings per common share	$	1.17	$	1.35	$	3.06	$	3.35
Diluted earnings per common share	$	1.17	$	1.35	$	3.05	$	3.34
Anti-dilutive weighted-average shares	122		57		87		47

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Investment Securities

9 Months Ended

Sep. 30, 2016

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Investment Securities

The Company's investment securities consist of available-for-sale asset-backed securities with contractual maturities of twelve months or less. These securities are stated at fair value within current assets on the Company's balance sheet. Realized gains and losses on sales of investments, if any, are reflected in nonoperating income (expense) in the statements of operations. Unrealized gains and losses on investment securities are reflected as a component of accumulated other comprehensive income, (AOCI).

During the third quarter of 2016, the Company invested $100 million in available-for-sale investment securities, earning interest income at a weighted-average fixed rate of approximately 1.2%. For the three and nine months ended September 30, 2016, an unrealized gain of $4 thousand, net of deferred taxes of $3 thousand, was recorded within AOCI related to these investment securities. The Company has not recognized any realized gains or losses related to these securities as the Company has not transacted any sales of these securities.

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Accrued Liabilities

9 Months Ended

Sep. 30, 2016

Payables and Accruals [Abstract]

Accrued Liabilities

Accrued Liabilities

Other current liabilities as of September 30, 2016 and December 31, 2015 consist of the following:

	September 30, 2016		December 31, 2015
	(in thousands)
Salaries and wages	$	45,696	$	34,123
Federal excise and other passenger taxes and fees payable	41,452		38,254
Aircraft maintenance	39,393		21,688
Airport obligations	36,788		30,849
Interest payable	14,796		12,355
Fuel	11,225		7,084
Aircraft and facility lease obligations	11,117		24,014
Other	17,312		14,362
Other current liabilities	$	217,779	$	182,729

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Financial Instruments and Risk Management

9 Months Ended

Sep. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial Instruments and Risk Management

Financial Instruments and Risk Management

As part of the Company’s risk management program, the Company from time to time may use a variety of financial instruments to reduce its exposure to fluctuations in the price of jet fuel and interest rates. The Company does not hold or issue derivative financial instruments for trading purposes.

The Company is exposed to credit losses in the event of nonperformance by counterparties to these financial instruments. The Company periodically reviews and seeks to mitigate exposure to the financial deterioration and nonperformance of any counterparty by monitoring absolute exposure levels, credit ratings, and historical performance of counterparties relating to derivative transactions. The credit exposure related to these financial instruments is limited to the fair value of contracts in a net receivable position at the reporting date. The Company also maintains security agreements that require the Company to post collateral if the value of selected instruments falls below specified mark-to-market thresholds. The Company records financial derivative instruments at fair value, which includes an evaluation of each counterparty's credit risk.

Fuel Derivative Instruments

The Company's fuel derivative contracts generally consist of United States Gulf Coast jet fuel swaps (jet fuel swaps) and United States Gulf Coast jet fuel options (jet fuel options). Both jet fuel swaps and jet fuel options are used at times to protect the refining price risk between the price of crude oil and the price of refined jet fuel and to manage the risk of increasing fuel prices. Fair value of the instruments is determined using standard option valuation models.

The Company accounts for its fuel derivative contracts at fair value and recognizes them in the balance sheet in prepaid expenses and other current assets or other current liabilities. The Company did not enter into any fuel derivative instruments during the three and nine months ended September 30, 2016. The Company did not elect hedge accounting on any fuel derivative instruments entered into during the three and nine months ended September 30, 2015 and, as a result, changes in the fair value of these fuel derivative contracts are recorded in aircraft fuel expense. During the three and nine months ended September 30, 2016, the Company did not pay any premiums to acquire jet fuel options. During the three and nine months ended September 30, 2015, the Company paid $0.3 million and $2.5 million in premiums to acquire jet fuel options, respectively.

The following table summarizes the components of aircraft fuel expense for the three and nine months ended September 30, 2016 and 2015:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
	(in thousands)
Into-plane fuel cost	$	121,844	$	114,081	$	321,018	$	349,549
Realized losses (gains) related to fuel derivative contracts, net	—		1,736		—		8,575
Unrealized losses (gains) related to fuel derivative contracts, net	—		82		—		(1,892		)
Aircraft fuel	$	121,844	$	115,899	$	321,018	$	356,232

Any premiums and settlements received or paid on fuel derivative contracts are reflected in the accompanying statements of cash flows in net cash provided by operating activities.

As of September 30, 2016 and December 31, 2015, the Company did not have any outstanding fuel derivatives and had no fuel hedging activity for the three and nine months ended September 30, 2016.

Interest Rate Swaps

During 2015, the Company settled six forward interest rate swaps that were designed to fix the benchmark interest rate component of interest payments on the debt related to three Airbus A321 aircraft, which the Company took delivery of during the third quarter of 2015. These instruments limited the Company's exposure to changes in the benchmark interest rate in the period from the trade date through the date of maturity. The interest rate swaps were designated as cash flow hedges. The Company accounts for interest rate swaps at fair value and recognizes them in the balance sheet in prepaid expenses and other current assets or other current liabilities with changes in fair value recorded within accumulated other comprehensive income (AOCI). As of September 30, 2016 and December 31, 2015, the Company did not have any outstanding interest rate swaps.

Realized gains and losses from cash flow hedges are recorded in the statement of cash flows as a component of cash flows from operating activities. Subsequent to the issuance of each debt instrument, amounts remaining in AOCI are amortized over the life of the fixed-rate debt instrument. For the three and nine months ended September 30, 2016, there were no unrealized gains or losses recorded within AOCI related to these instruments as they settled in 2015. For the three and nine months ended September 30, 2015, an unrealized loss of $0.6 million and $0.9 million, net of deferred taxes of $0.3 million and $0.5 million, respectively, was recorded within AOCI related to these instruments. For the three and nine months ended September 30, 2016, the Company reclassified interest rate swap losses of $56 thousand and $170 thousand, net of tax of $32 thousand and $97 thousand, into earnings, respectively. For the three and nine months ended September 30, 2015, the Company reclassified interest rate swap losses of $25 thousand, net of tax of $15 thousand, into earnings. As of September 30, 2016 and December 31, 2015, $1.4 million and $1.5 million, net of tax, remained in AOCI related to these instruments.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Aircraft-Related Commitments and Financing Arrangements

The Company’s contractual purchase commitments consist primarily of aircraft and engine acquisitions through manufacturers and aircraft leasing companies. As of September 30, 2016, the Company's aircraft orders consisted of the following:

	Airbus			Third-Party Lessor
	A320ceo	A320neo	A321ceo	A320neo	Total
remainder of 2016	—	—	1	5	6
2017	4	—	11	—	15
2018	5	4	5	—	14
2019	1	12	—	—	13
2020	—	16	—	—	16
2021	—	18	—	—	18
	10	50	17	5	82

On April 27, 2016, the Company entered into an amendment to the Airbus A320 Family Purchase Agreement, by and between the Company and Airbus S.A.S., dated May 5, 2004 (Airbus Amendment) which included the conversion of ten Airbus A321neo orders to Airbus A320neo orders. The Company also has four spare engine orders for V2500 SelectOneengines with International Aero Engines (IAE) and nine spare engine orders for PurePower PW1100G-JM engines with Pratt & Whitney. Spare engines are scheduled for delivery from 2016 through 2023. Purchase commitments for these aircraft and spare engines, including estimated amounts for contractual price escalations and pre-delivery payments, are estimated to be approximately $104 million for the remainder of 2016, $659 million in 2017, $650 million in 2018, $679 million in 2019, $823 million in 2020, and $803 million in 2021 and beyond. The Company has secured debt financing commitments of $38.7 million for 1 aircraft scheduled for delivery in the remainder of 2016 and $38.5 million for 1 aircraft scheduled for delivery in 2017. See Note 10, Long-Term Debt - 2015-1 EETCs. In addition, the Company has secured financing for five aircraft to be leased directly from a third party, scheduled for delivery in 2016. The Company does not have financing commitments in place for the remaining 75 Airbus aircraft currently on firm order, which are scheduled for delivery in 2017 through 2021.

Interest commitments related to the secured debt financing of 13 delivered aircraft as of September 30, 2016 are approximately $16.1 million for the remainder of 2016, $40.6 million in 2017, $36.8 million in 2018, $33.3 million in 2019, $29.7 million in 2020, and $118.3 million in 2021 and beyond. For principal commitments related to these financed aircraft, refer to Note 10, Long-Term Debt. Principal and interest commitments related to the Company's future secured debt financing of 2 undelivered aircraft as of September 30, 2016 are approximately $1.6 million for the remainder of 2016, $11.6 million in 2017, $8.1 million in 2018, $7.4 million in 2019, $7.1 million in 2020, and $65.7 million in 2021 and beyond.

As of September 30, 2016, the Company had a fleet consisting of 89 A320 family aircraft. During the nine months ended September 30, 2016, the Company took delivery of ten aircraft financed under secured debt arrangements and purchased six previously leased aircraft. For further discussion on the six previously leased aircraft, refer to Note 3, Special Charges. These aircraft are capitalized within flight equipment and generally have depreciable lives of 25 years and estimated residual values of 10%. As of September 30, 2016, the Company had 55 aircraft and 11 spare engines financed under operating leases with lease term expiration dates ranging from 2017 to 2029. The Company entered into sale and leaseback transactions with third-party aircraft lessors for the majority of these aircraft and engine leases. Deferred losses resulting from these sale and leaseback transactions are included in other long-term assets on the accompanying balance sheet. Deferred losses are recognized as an increase to rent expense on a straight-line basis over the term of the respective operating leases. Deferred gains are included in deferred credits and other long-term liabilities on the accompanying balance sheet. Deferred gains are recognized as a decrease to rent expense on a straight-line basis over the term of the respective operating leases.

Under the terms of the lease agreements, the Company will continue to operate and maintain the aircraft. Payments under the majority of the lease agreements are fixed for the term of the lease. The lease agreements contain standard termination events, including termination upon a breach of the Company's obligations to make rental payments and upon any other material breach of the Company's obligations under the leases, and standard maintenance and return condition provisions. These return provisions are evaluated at inception of the lease and throughout the lease terms and are accounted for as supplemental rent expense when it is probable that such amounts will be incurred. Upon a termination of the lease due to a breach by the Company, the Company would be liable for standard contractual damages, possibly including damages suffered by the lessor in connection with remarketing the aircraft or while the aircraft is not leased to another party.

Future minimum lease payments under noncancellable operating leases with initial or remaining terms in excess of one year at September 30, 2016 were as follows:

		Operating Leases
		Aircraft and Spare Engine Leases		Property Facility Leases		Total Operating Lease Obligations
	(in thousands)
remainder of 2016		$	50,986	$	10,824	$	61,810
2017		194,607		34,988		229,595
2018		177,717		34,714		212,431
2019		158,818		30,312		189,130
2020		150,842		19,111		169,953
2021 and thereafter		520,857		60,513		581,370
Total minimum lease payments		$	1,253,827	$	190,462	$	1,444,289

Aircraft rent expense consists of all minimum lease payments under the terms of the Company's aircraft and spare engine lease agreements recognized on a straight-line basis. Aircraft rent expense also includes supplemental rent. Supplemental rent is made up of maintenance reserves paid or expected to be paid to aircraft lessors in advance of the performance of major maintenance activities that are not probable of being reimbursed and probable return condition obligations. The Company expects supplemental rent to increase as individual aircraft lease agreements approach their respective termination dates and the Company begins to accrue the estimated cost of return conditions for the corresponding aircraft.

Some of the Company’s master lease agreements provide that the Company pay maintenance reserves to aircraft lessors to be held as collateral in advance of the Company’s required performance of major maintenance activities. Substantially all of these maintenance reserve payments are calculated based on a utilization measure, such as flight hours or cycles, while some maintenance reserve payments are fixed contractual amounts. Fixed maintenance reserve payments for these aircraft and related flight equipment, including estimated amounts for contractual price escalations, are expected to be $1.8 million for the remainder of 2016, $6.6 million in 2017, $5.6 million in 2018, $4.2 million in 2019, $3.9 million in 2020, and $10.2 million in 2021 and beyond. These lease agreements provide that maintenance reserves are reimbursable to the Company upon completion of the maintenance event in an amount equal to either (1) the amount of the maintenance reserves held by the lessor associated with the specific maintenance event or (2) the qualifying costs related to the specific maintenance event. Some of the master lease agreements do not require that the Company pay maintenance reserves so long as the Company's cash balance does not fall below a certain level. As of September 30, 2016, the Company was in full compliance with those requirements and does not anticipate having to pay reserves related to these master leases in the future.

In July 2015, the Company executed an upgrade service agreement with Airbus Americas Customer Services Inc. (Airbus) to reconfigure the seating and increase capacity in 40 of the Company’s existing A320 aircraft from 178 to 182 seats (reconfiguration). The reconfiguration of the aircraft commenced in the first quarter of 2016 and is expected to be completed during the fourth quarter of 2017. The cost of the reconfiguration is expected to be approximately $0.6 million per aircraft and purchase commitments for the reconfiguration kits are estimated to be approximately $5.0 million for the remainder of 2016, $8.7 million in 2017 and nonethereafter.

In September 2015, the Company executed a lease agreement with Wayne County Airport Authority (the Authority), which owns and operates Detroit Metropolitan Wayne County Airport (DTW). Under the lease agreement, the Company leases a 10-acre site, adjacent to the airfield at DTW, in order to construct, operate and maintain an approximately 126,000-square-foot hangar facility (the project). The project allows for the development of a maintenance hangar in order to fulfill the requirements of the Company's growing fleet and to reduce dependence on third-party facilities and contract line maintenance. The lease agreement has a 30-year term with 210-year extension options. Upon termination of the lease, ownership will automatically pass to the Authority. The Company estimates it will complete the project during the fourth quarter of 2016 at a cost of approximately $32 million. The Company will depreciate all capitalized costs related to the project over the lesser of the useful life of the asset or the lease term.

The Company is contractually obligated to pay the following minimum guaranteed payments for its reservation system, data center and advertising media as of September 30, 2016: $1.4 million for the remainder of 2016, $5.2 million in 2017, $3.8 million in 2018, $0.2 million in 2019, $0.2 million in 2020, and $0.0 million in 2021 and beyond. The Company's current agreement with its reservation system provider expires in 2018.

Litigation

The Company is subject to commercial litigation claims and to administrative and regulatory proceedings and reviews that may be asserted or maintained from time to time. The Company believes the ultimate outcome of such lawsuits, proceedings and reviews will not, individually or in the aggregate, have a material adverse effect on its financial position, liquidity or results of operations.

Credit Card Processing Arrangements

The Company has agreements with organizations that process credit card transactions arising from the purchase of air travel, baggage charges, and other ancillary services by customers. As is standard in the airline industry, the Company's contractual arrangements with credit card processors permit them, under certain circumstances, to retain a holdback or other collateral, which the Company records as restricted cash, when future air travel and other future services are purchased via credit card transactions. The required holdback is the percentage of the Company's overall credit card sales its credit card processors hold to cover refunds to customers if the Company fails to fulfill its flight obligations.

The Company's credit card processors do not require the Company to maintain cash collateral if the Company satisfies certain liquidity and other financial covenants. Failure to meet these covenants would provide the processors the right to place a holdback, resulting in a commensurate reduction of unrestricted cash. As of September 30, 2016 and December 31, 2015, the Company was in compliance with such liquidity and other financial covenants in its credit card processing agreements, and the processors were holding back no remittances.

The maximum potential exposure to cash holdbacks by the Company's credit card processors, based upon advance ticket sales and $9 Fare Club memberships as of September 30, 2016 and December 31, 2015, was $281.4 million and $250.2 million, respectively.

Employees

The Company has 4 union-represented employee groups that together represented approximately 72% of all employees at September 30, 2016. The table below sets forth the Company's employee groups and status of the collective bargaining agreements as of September 30, 2016.

Employee Groups	Representative	Amendable Date	Percentage of Workforce
Pilots	Air Line Pilots Association, International (ALPA)	August 2015	26%
Flight Attendants	Association of Flight Attendants (AFA-CWA)	May 2021	42%
Dispatchers	Transport Workers Union (TWU)	August 2018	1%
Ramp Service Agents	International Association of Machinists and Aerospace Workers (IAMAW)	June 2020	3%

In March 2016, under the supervision of the National Mediation Board (NMB), the Company and AFA-CWA reached a tentative agreement for a five-year contract with the Company's flight attendants. In May 2016, the flight attendants voted to approve the new five-year contract with the Company. In connection with this agreement, the Company paid a $9.6 million ratification incentive payment to the flight attendants recorded within salaries, wages and benefits in the statement of operations.

In August 2015, the Company's collective bargaining agreement with its pilots, represented by ALPA, became amendable. In June 2016, ALPA requested the services of the National Mediation Board (NMB) to facilitate negotiations for an amended agreement and the Company joined ALPA in the request. The NMB has assigned a mediator and the parties continue to meet and work toward a new agreement with the guidance of the mediator. Under the RLA, the parties' current agreement remains in effect until an amended agreement is reached.

In July 2014, certain ramp service agents directly employed by the Company voted to be represented by the IAMAW. In May 2015, the Company entered into a five-year interim collective bargaining agreement with the IAMAW, covering material economic terms. In June 2016, the Company and the IAMAW reached an agreement on the remaining terms of the collective bargaining agreement, which is amendable in June 2020. As of September 30, 2016, ramp service agents represented by the IAMAW service 1 of the 56 airports where the Company operates.

The Company is self-insured for health care claims, up to a stop loss amount for eligible participating employees and qualified dependent medical claims, subject to deductibles and limitations. The Company’s liabilities for claims incurred but not reported are determined based on an estimate of the ultimate aggregate liability for claims incurred. The estimate is calculated from actual claim rates and adjusted periodically as necessary. The Company has accrued $4.6 million and $3.7 million in health care claims as of September 30, 2016 and December 31, 2015, respectively.

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Fair Value Measurements

9 Months Ended

Sep. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Under ASC 820, Fair Value Measurements and Disclosures, disclosures relating to how fair value is determined for assets and liabilities are required, and a hierarchy for which these assets and liabilities must be grouped is established, based on significant levels of inputs, as follows:

Level 1—Quoted prices in active markets for identical assets or liabilities.

Level 2—Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company utilizes several valuation techniques in order to assess the fair value of the Company’s financial assets and liabilities.

Fuel Derivative Instruments

From time to time, the Company may enter into fuel derivative contracts in order to mitigate the risk of future volatility in fuel prices. The Company’s fuel derivative contracts generally consist of jet fuel swaps and jet fuel options. These instruments are valued using energy and commodity market data, which is derived by combining raw inputs with quantitative models and processes to generate forward curves and volatilities.

The Company utilizes the market approach to measure fair value for its fuel derivative instruments, if any. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.

The Company does not elect hedge accounting on its fuel derivative instruments. As a result, the Company records the fair value adjustment of its fuel derivatives in the accompanying statement of operations within aircraft fuel and on the balance sheet within prepaid expenses and other current assets or other current liabilities, depending on whether the net fair value of the derivatives is in an asset or liability position as of the respective date. Fair values of the fuel derivative instruments are determined using standard option valuation models. The Company also considers counterparty risk and its own credit risk in its determination of all estimated fair values. The Company offsets fair value amounts recognized for derivative instruments executed with the same counterparty under a master netting arrangement. The Company determines fair value of jet fuel options utilizing an option pricing model based on inputs that are either readily available in public markets or can be derived from information available in publicly quoted markets. The Company has consistently applied these valuation techniques in all periods presented and believes it has obtained the most accurate information available for the types of derivative contracts it holds.

The fair value of the Company's jet fuel swaps is determined based on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets; therefore, the Company categorizes these instruments as Level 2. Due to the fact that certain inputs utilized to determine the fair value of jet fuel options are unobservable (principally implied volatility), the Company categorizes these derivatives as Level 3. Implied volatility of a jet fuel option is the volatility of the price of the underlying commodity that is implied by the market price of the option based on an option pricing model. Thus, it is the volatility that when used in a particular pricing model yields a theoretical value for the option equal to the current market price of that option. Implied volatility, a forward-looking measure, differs from historical volatility because the latter is calculated from known past returns. At each balance sheet date, the Company substantiates and adjusts unobservable inputs. The Company routinely assesses the valuation model's sensitivity to changes in implied volatility. Based on the Company's assessment of the valuation model's sensitivity to changes in implied volatility, it concluded that holding other inputs constant, a significant increase (decrease) in implied volatility would result in a significantly higher (lower) fair value measurement for the Company's aircraft fuel derivatives. As of September 30, 2016 and December 31, 2015, the Company had no outstanding fuel derivatives.

Long-Term Debt

The estimated fair value of the Company's non-publicly held debt agreements has been determined to be Level 3, as certain inputs used to determine the fair value of these agreements are unobservable. The Company utilizes a discounted cash flow method to estimate the fair value of the Level 3 long-term debt. The estimated fair value of the Company's publicly held debt agreements has been determined to be Level 2, as the Company utilizes quoted market prices to estimate the fair value of its public long-term debt.

The carrying amounts and estimated fair values of the Company's long-term debt at September 30, 2016 and December 31, 2015 were as follows:

	September 30, 2016				December 31, 2015
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value		Fair value level hierarchy
	(in millions)
Senior long-term debt	$	460.1	$	477.4	$	484.2	$	477.8	Level 3
Junior long-term debt	48.9		50.5		54.3		54.6		Level 3
Class A enhanced equipment trust certificates	394.8		402.7		95.8		94.8		Level 2
Class B enhanced equipment trust certificates	104.5		106.1		25.0		25.2		Level 2
Total long-term debt	$	1,008.3	$	1,036.7	$	659.3	$	652.4

Cash and Cash Equivalents

Cash and cash equivalents at September 30, 2016 and December 31, 2015 are comprised of liquid money market funds and cash, and are categorized as Level 1 instruments. The Company maintains cash with various high-quality financial institutions.

Investment Securities

Investment securities at September 30, 2016 are comprised of short-term available-for-sale securities and are categorized as Level 1 instruments, as the Company uses quoted market prices in active markets when determining the fair value of these securities. As of December 31, 2015, the Company had no outstanding investment securities.

Assets and liabilities measured at gross fair value on a recurring basis are summarized below:

	Fair Value Measurements as of September 30, 2016
	Total		Level 1		Level 2		Level 3
	(in millions)
Cash and cash equivalents	$	825.9	$	825.9	$	—	$	—
Investment securities	$	100.1	$	100.1	$	—	$	—
Total assets	$	926.0	$	926.0	$	—	$	—
Total liabilities	$	—	$	—	$	—	$	—

	Fair Value Measurements as of December 31, 2015
	Total		Level 1		Level 2		Level 3
	(in millions)
Cash and cash equivalents	$	803.6	$	803.6	$	—	$	—
Total assets	$	803.6	$	803.6	$	—	$	—
Total liabilities	$	—	$	—	$	—	$	—

The Company had no transfers of assets or liabilities between any of the above levels during the periods ended September 30, 2016 and December 31, 2015.

The Company's Valuation Group, which reports to the Chief Financial Officer, is made up of individuals from the Company's Treasury and Corporate Accounting departments. The Valuation Group is responsible for the execution of the Company's valuation policies and procedures. The Valuation Group compares the results of the Company's internally developed valuation methods with counterparty reports at each balance sheet date, assesses the Company's valuation methods for accurateness and identifies any needs for modification.

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Long-term Debt Long-term Debt

9 Months Ended

Sep. 30, 2016

Debt Disclosure [Abstract]

Long-term Debt

Long-Term Debt

As of September 30, 2016, the Company has issued non-public and public debt instruments. The Company's indebtedness includes the 2014 Framework Agreement, the 2015 Facility Agreements and the 2015-1 EETCs, as defined in the Company's Form 10-K for the year ended December 31, 2015.

2015-1 EETCs

In August 2015, the Company created two separate pass-through trusts, which issued approximately $576.6 million aggregate face amount of Series 2015-1 Class A and Class B enhanced equipment trust certificates (EETCs) in connection with the financing of 15 aircraft. Each class of certificates represents a fractional undivided interest in the respective pass-through trusts and is not an obligation of the Company. The proceeds from the issuance of these certificates are initially held in escrow by a depositary and, upon satisfaction of certain terms and conditions, are released and used to purchase equipment notes which are issued by the Company and secured by the Company's aircraft. As of September 30, 2016, $499.3 million of the proceeds from the sale of the 2015-1 EETCs had been used to purchase equipment notes in connection with the financing of 3 Airbus A320 aircraft and 10 Airbus A321 aircraft. The remaining two aircraft are scheduled for delivery between November 2016 and January 2017.

The Company evaluated whether the pass-through trusts formed are variable interest entities (VIEs) required to be consolidated by the Company under applicable accounting guidance. The Company determined that the pass-through trusts are VIEs and that it does not have a variable interest in the pass-through trusts. Based on this analysis, the Company determined that it is not required to consolidate these pass-through trusts.

Long-term debt is comprised of the following:    

	As of				Three Months Ended September 30,				Nine Months Ended September 30,
	September 30, 2016		December 31, 2015		2016		2015		2016		2015
	(in millions)				(weighted-average interest rates)
Fixed-rate senior term loans due through 2027	$	460.1	$	484.2	4.10	%	4.10	%	4.10	%	4.10	%
Fixed-rate junior term loans due through 2022	48.9		54.3		6.90	%	6.90	%	6.90	%	6.90	%
Fixed-rate class A enhanced equipment trust certificates due through 2028	394.8		95.8		4.03	%	N/A		4.03	%	N/A
Fixed-rate class B enhanced equipment trust certificates due through 2024	104.5		25.0		4.38	%	N/A		4.38	%	N/A
Long-term debt	$	1,008.3	$	659.3
Less current maturities	84.4		49.6
Less unamortized discounts, net	29.1		13.0
Total	$	894.8	$	596.7

During the three and nine months ended September 30, 2016, the Company made scheduled principal payments of $10.0 million and $29.6 million on its outstanding debt obligations, respectively. During the three and nine months ended September 30, 2015, the Company made scheduled principal payments of $7.6 million and $15.8 million on its outstanding debt obligations, respectively.

At September 30, 2016, long-term debt principal payments for the next five years and thereafter were as follows:

	September 30, 2016
	(in millions)
remainder of 2016	$	34.7
2017	84.6
2018	80.4
2019	79.1
2020	77.3
2021 and thereafter	652.2
Total debt principal payments	$	1,008.3

Interest Expense

Interest expense related to long-term debt consisted of the following:

	Three Months Ended September 30				Nine Months Ended September 30,
	2016		2015		2016		2015
	(in thousands)
Senior term loans	$	4,917	$	4,639	$	14,929	$	10,260
Junior term loans	879		926		2,721		2,023
Class A enhanced equipment trust certificates	3,538		—		7,419		—
Class B enhanced equipment trust certificates	1,015		—		2,124		—
Commitment fees	32		—		97		—
Amortization of debt discounts	979		340		2,289		729
Total	$	11,360	$	5,905	$	29,579	$	13,012

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Subsequent Event

9 Months Ended

Sep. 30, 2016

Subsequent Events [Abstract]

Subsequent Event

Subsequent Events

In October 2016, the Company took delivery of two A320neos, the first US based carrier to take delivery and service such aircraft. These aircraft are financed under operating lease agreements.

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Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of accounting

The accompanying unaudited condensed financial statements include the accounts of Spirit Airlines, Inc. (the Company). These unaudited condensed financial statements reflect all normal recurring adjustments that management believes are necessary to fairly present the financial position, results of operations and cash flows of the Company for the respective periods presented. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission for Form 10-Q. These unaudited interim condensed financial statements should be read in conjunction with the audited financial statements of the Company and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2015 filed with the Securities and Exchange Commission on February 17, 2016.

Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect both the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates.

Recent Accounting Developments

Revenue from Contracts with Customers

In May 2014, the Financial Accounting Standards Board (the FASB) issued Accounting Standards Update (ASU) No. 2014-09, (ASU 2014-09), "Revenue from Contracts with Customers." The objective of ASU 2014-09 is to establish a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. ASU 2014-09 will supersede most of the existing revenue recognition guidance, including industry-specific guidance. The core principle of ASU 2014-09 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 applies to all contracts with customers except those that are within the scope of other topics in the FASB Accounting Standards Codification. The new guidance is effective for the Company in the first quarter of 2018. Early adoption is permitted, but not before the first quarter of 2017. Entities have the option to use either a full retrospective or modified approach to adopt ASU 2014-09. The Company is currently evaluating the new guidance and has neither determined the full impact this standard may have on its financial statements nor decided upon the planned method of adoption. While the Company is still evaluating the impact, it expects the accounting for its frequent flier program to be impacted as ASU 2014-09 will no longer allow use of the incremental cost method when recording revenue related to the Company's loyalty programs. The Company also expects the classification and timing of recognition of certain ancillary fees to be impacted by adoption of ASU 2014-09.

Financial Instruments

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10).” ASU 2016-01 makes several modifications to Subtopic 825-10 including the elimination of the available-for-sale classification of equity investments, and requires equity investments with readily determinable fair values to be measured at fair value with changes in fair value recognized in net income. ASU 2016-01 is effective for interim and annual periods beginning after December 15, 2017 and is not expected to have a material impact on the Company’s financial statements.

Leases

In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)." This standard will require all leases with durations greater than twelve months to be recognized on the balance sheet and is effective for the Company in the first quarter of 2019, with early adoption permitted. The Company is currently evaluating the new guidance and believes adoption of this standard will have a significant impact on its balance sheets although adoption is not expected to significantly change the recognition, measurement or presentation of lease expenses within the statements of operations and cash flows. See Note 8, Commitments and Contingencies for information regarding the Company's undiscounted future lease payments and the timing of those payments.

Share-Based Compensation

In March 2016, the FASB issued ASU No. 2016-09, "Improvements to Employee Share-Based Payment Accounting," which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification on the statement of cash flows. The new guidance is effective for the Company in the first quarter of 2017, with early adoption permitted. The Company is in the process of evaluating the impact of adoption of this guidance on its financial statements.

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Earnings per Share (Tables)

9 Months Ended

Sep. 30, 2016

Earnings Per Share [Abstract]

Computation of basic and diluted earnings per common share

The following table sets forth the computation of basic and diluted earnings per common share:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
	(in thousands, except per share amounts)
Numerator
Net income	$	81,382	$	97,114	$	216,386	$	242,820
Denominator
Weighted-average shares outstanding, basic	69,727		71,738		70,689		72,432
Effect of dilutive stock awards	81		146		143		248
Adjusted weighted-average shares outstanding, diluted	69,808		71,884		70,832		72,680
Net income per share
Basic earnings per common share	$	1.17	$	1.35	$	3.06	$	3.35
Diluted earnings per common share	$	1.17	$	1.35	$	3.05	$	3.34
Anti-dilutive weighted-average shares	122		57		87		47

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Accrued Liabilities (Tables)

9 Months Ended

Sep. 30, 2016

Payables and Accruals [Abstract]

Accrued liabilities included in other current liabilities

Other current liabilities as of September 30, 2016 and December 31, 2015 consist of the following:

	September 30, 2016		December 31, 2015
	(in thousands)
Salaries and wages	$	45,696	$	34,123
Federal excise and other passenger taxes and fees payable	41,452		38,254
Aircraft maintenance	39,393		21,688
Airport obligations	36,788		30,849
Interest payable	14,796		12,355
Fuel	11,225		7,084
Aircraft and facility lease obligations	11,117		24,014
Other	17,312		14,362
Other current liabilities	$	217,779	$	182,729

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Financial Instruments and Risk Management (Tables)

9 Months Ended

Sep. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Components of aircraft fuel expense

The following table summarizes the components of aircraft fuel expense for the three and nine months ended September 30, 2016 and 2015:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
	(in thousands)
Into-plane fuel cost	$	121,844	$	114,081	$	321,018	$	349,549
Realized losses (gains) related to fuel derivative contracts, net	—		1,736		—		8,575
Unrealized losses (gains) related to fuel derivative contracts, net	—		82		—		(1,892		)
Aircraft fuel	$	121,844	$	115,899	$	321,018	$	356,232

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Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Operating Aircraft Leases

As of September 30, 2016, the Company's aircraft orders consisted of the following:

	Airbus			Third-Party Lessor
	A320ceo	A320neo	A321ceo	A320neo	Total
remainder of 2016	—	—	1	5	6
2017	4	—	11	—	15
2018	5	4	5	—	14
2019	1	12	—	—	13
2020	—	16	—	—	16
2021	—	18	—	—	18
	10	50	17	5	82

Future minimum lease payments under noncancelable operating leases

Future minimum lease payments under noncancellable operating leases with initial or remaining terms in excess of one year at September 30, 2016 were as follows:

		Operating Leases
		Aircraft and Spare Engine Leases		Property Facility Leases		Total Operating Lease Obligations
	(in thousands)
remainder of 2016		$	50,986	$	10,824	$	61,810
2017		194,607		34,988		229,595
2018		177,717		34,714		212,431
2019		158,818		30,312		189,130
2020		150,842		19,111		169,953
2021 and thereafter		520,857		60,513		581,370
Total minimum lease payments		$	1,253,827	$	190,462	$	1,444,289

Employee groups and status of the collective bargaining agreements

The table below sets forth the Company's employee groups and status of the collective bargaining agreements as of September 30, 2016.

Employee Groups	Representative	Amendable Date	Percentage of Workforce
Pilots	Air Line Pilots Association, International (ALPA)	August 2015	26%
Flight Attendants	Association of Flight Attendants (AFA-CWA)	May 2021	42%
Dispatchers	Transport Workers Union (TWU)	August 2018	1%
Ramp Service Agents	International Association of Machinists and Aerospace Workers (IAMAW)	June 2020	3%

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2016

Fair Value Disclosures [Abstract]

Carrying amount and estimated fair value, long-term debt

The carrying amounts and estimated fair values of the Company's long-term debt at September 30, 2016 and December 31, 2015 were as follows:

	September 30, 2016				December 31, 2015
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value		Fair value level hierarchy
	(in millions)
Senior long-term debt	$	460.1	$	477.4	$	484.2	$	477.8	Level 3
Junior long-term debt	48.9		50.5		54.3		54.6		Level 3
Class A enhanced equipment trust certificates	394.8		402.7		95.8		94.8		Level 2
Class B enhanced equipment trust certificates	104.5		106.1		25.0		25.2		Level 2
Total long-term debt	$	1,008.3	$	1,036.7	$	659.3	$	652.4

Schedule of assets and liabilities measured at fair value on a recurring basis

Assets and liabilities measured at gross fair value on a recurring basis are summarized below:

	Fair Value Measurements as of September 30, 2016
	Total		Level 1		Level 2		Level 3
	(in millions)
Cash and cash equivalents	$	825.9	$	825.9	$	—	$	—
Investment securities	$	100.1	$	100.1	$	—	$	—
Total assets	$	926.0	$	926.0	$	—	$	—
Total liabilities	$	—	$	—	$	—	$	—

	Fair Value Measurements as of December 31, 2015
	Total		Level 1		Level 2		Level 3
	(in millions)
Cash and cash equivalents	$	803.6	$	803.6	$	—	$	—
Total assets	$	803.6	$	803.6	$	—	$	—
Total liabilities	$	—	$	—	$	—	$	—

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Long-term Debt (Tables)

9 Months Ended

Sep. 30, 2016

Debt Disclosure [Abstract]

Schedule of Long-term Debt

Long-term debt is comprised of the following:    

	As of				Three Months Ended September 30,				Nine Months Ended September 30,
	September 30, 2016		December 31, 2015		2016		2015		2016		2015
	(in millions)				(weighted-average interest rates)
Fixed-rate senior term loans due through 2027	$	460.1	$	484.2	4.10	%	4.10	%	4.10	%	4.10	%
Fixed-rate junior term loans due through 2022	48.9		54.3		6.90	%	6.90	%	6.90	%	6.90	%
Fixed-rate class A enhanced equipment trust certificates due through 2028	394.8		95.8		4.03	%	N/A		4.03	%	N/A
Fixed-rate class B enhanced equipment trust certificates due through 2024	104.5		25.0		4.38	%	N/A		4.38	%	N/A
Long-term debt	$	1,008.3	$	659.3
Less current maturities	84.4		49.6
Less unamortized discounts, net	29.1		13.0
Total	$	894.8	$	596.7

Schedule of Maturities of Long-term Debt

At September 30, 2016, long-term debt principal payments for the next five years and thereafter were as follows:

	September 30, 2016
	(in millions)
remainder of 2016	$	34.7
2017	84.6
2018	80.4
2019	79.1
2020	77.3
2021 and thereafter	652.2
Total debt principal payments	$	1,008.3

Schedule of Interest Expense, Long-term Debt

Interest expense related to long-term debt consisted of the following:

	Three Months Ended September 30				Nine Months Ended September 30,
	2016		2015		2016		2015
	(in thousands)
Senior term loans	$	4,917	$	4,639	$	14,929	$	10,260
Junior term loans	879		926		2,721		2,023
Class A enhanced equipment trust certificates	3,538		—		7,419		—
Class B enhanced equipment trust certificates	1,015		—		2,124		—
Commitment fees	32		—		97		—
Amortization of debt discounts	979		340		2,289		729
Total	$	11,360	$	5,905	$	29,579	$	13,012

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Special Charges (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016 USD ($) aircraft	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($) aircraft	Sep. 30, 2015 USD ($)
Property, Plant and Equipment [Line Items]
Payments for Purchase of Other Assets			$ 447,455	$ 451,799
Special charges (credits)	$ 7,355	$ (76)	$ 31,609	$ 673
Aircraft [Member]
Property, Plant and Equipment [Line Items]
Number of Previously Leased Aircraft Purchased | aircraft			6
Airbus A319 [Member] | Aircraft [Member]
Property, Plant and Equipment [Line Items]
Number of Previously Leased Aircraft Purchased | aircraft	3		6
Payments to Acquire Equipment on Lease	$ 58,800		$ 124,700
Payments for Purchase of Other Assets	58,100		91,900
Noncash or Part Noncash Acquisition, Description	700		32,800
Fair Value of Assets Acquired	38,200		79,400
Special charges (credits)	7,355		31,648
Operating Leases, Rent Expense, Supplemental, Maintenance Reserves	$ 13,200		$ 13,700

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Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Numerator
Net income	$ 81,382	$ 97,114	$ 216,386	$ 242,820
Denominator
Weighted-average shares outstanding, basic (in shares)	69,727	71,738	70,689	72,432
Effect of dilutive stock awards (in shares)	81	146	143	248
Adjusted weighted-average shares outstanding, diluted (in shares)	69,808	71,884	70,832	72,680
Net income per share
Basic earnings per common share (in dollars per share)	$ 1.17	$ 1.35	$ 3.06	$ 3.35
Diluted earnings per common share (in dollars per share)	$ 1.17	$ 1.35	$ 3.05	$ 3.34
Anti-dilutive weighted-average shares	122	57	87	47

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Investment Securities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Investment securities	$ 100,083		$ 100,083		$ 0
Weighted-average fixed rate	1.20%
Unrealized gain on investment securities, net of deferred taxes	$ 4	$ 0	4	$ 0
Deferred taxes on unrealized gain on investment securities	$ 3	$ 0	$ 3	$ 0

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Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Payables and Accruals [Abstract]
Salaries and wages	$ 45,696	$ 34,123
Salaries and wages	41,452	38,254
Aircraft maintenance	36,788	30,849
Interest payable	39,393	21,688
Fuel	14,796	12,355
Aircraft and facility lease obligations	11,225	7,084
Airport obligations	11,117	24,014
Other	17,312	14,362
Other current liabilities	$ 217,779	$ 182,729

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Financial Instruments and Risk Management (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Into-plane fuel cost	$ 121,844	$ 114,081	$ 321,018	$ 349,549
Realized losses (gains) related to fuel derivative contracts, net	0	1,736	0	8,575
Unrealized losses (gains) related to fuel derivative contracts, net	0	82	0	(1,892)
Aircraft fuel	$ 121,844	$ 115,899	$ 321,018	$ 356,232

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Financial Instruments and Risk Management - Narrative (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)	Dec. 31, 2015 USD ($) aircraft derivative_instrument
Derivative [Line Items]
Unrealized loss on interest rate derivative instruments	$ 0	$ 553	$ 0	$ 909
Unrealized gain (loss) on interest rate derivative instruments, tax	0	(320)	0	(511)
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion, Tax	32	15	97	15
Accumulated other comprehensive loss	(1,394)		(1,394)		$ (1,546)
Airbus A321 [Member] | 2015 [Member]
Derivative [Line Items]
Number of aircraft protected by interest rate derivatives schedule for delivery | aircraft					3
Commodity Option [Member]
Derivative [Line Items]
Payments for Premiums on Fuel Option Derivatives		300		2,500
Interest Rate Swap [Member]
Derivative [Line Items]
Number of interest rate derivatives settled | derivative_instrument					6
Interest Rate Swap [Member] | Cash Flow Hedging [Member]
Derivative [Line Items]
Unrealized loss on interest rate derivative instruments		600		900
Unrealized gain (loss) on interest rate derivative instruments, tax		300		500
Loss reclassified from AOCI into earnings	56	25	170	25
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion, Tax	$ 32	$ 15	$ 97	$ 15

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Commitments and Contingencies - Aircraft Contractual Purchase Commitments (Details)	Sep. 30, 2016 aircraft
Long-term Purchase Commitment [Line Items]
Future Aircraft To Be Received, Remainder of Fiscal Year	6
Future Aircraft To Be Received, in Two Years	15
Future Aircraft To Be Received, in Three Years	14
Future Aircraft To Be Received, in Four Years	13
Future Aircraft To Be Received, in Five Years	16
Future Aircraft To Be Received, in Six Years	18
Future Aircraft To Be Received	82
Airbus [Member] | A320 [Member]
Long-term Purchase Commitment [Line Items]
Future Aircraft To Be Received, Remainder of Fiscal Year	0
Future Aircraft To Be Received, in Two Years	4
Future Aircraft To Be Received, in Three Years	5
Future Aircraft To Be Received, in Four Years	1
Future Aircraft To Be Received, in Five Years	0
Future Aircraft To Be Received, in Six Years	0
Future Aircraft To Be Received	10
Airbus [Member] | A-320-Neo [Member]
Long-term Purchase Commitment [Line Items]
Future Aircraft To Be Received, Remainder of Fiscal Year	0
Future Aircraft To Be Received, in Two Years	0
Future Aircraft To Be Received, in Three Years	4
Future Aircraft To Be Received, in Four Years	12
Future Aircraft To Be Received, in Five Years	16
Future Aircraft To Be Received, in Six Years	18
Future Aircraft To Be Received	50
Airbus [Member] | A321 [Member]
Long-term Purchase Commitment [Line Items]
Future Aircraft To Be Received, Remainder of Fiscal Year	1
Future Aircraft To Be Received, in Two Years	11
Future Aircraft To Be Received, in Three Years	5
Future Aircraft To Be Received, in Four Years	0
Future Aircraft To Be Received, in Five Years	0
Future Aircraft To Be Received, in Six Years	0
Future Aircraft To Be Received	17
Third Party Lessor [Member] | A-320-Neo [Member]
Long-term Purchase Commitment [Line Items]
Future Aircraft To Be Received, Remainder of Fiscal Year	5
Future Aircraft To Be Received, in Two Years	0
Future Aircraft To Be Received, in Three Years	0
Future Aircraft To Be Received, in Four Years	0
Future Aircraft To Be Received, in Five Years	0
Future Aircraft To Be Received, in Six Years	0
Future Aircraft To Be Received	5

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Commitments and Contingencies - Aircraft Contractual Purchase Commitments Narrative (Details) $ in Millions	9 Months Ended
	Sep. 30, 2016 USD ($) aircraft_engine aircraft	Apr. 27, 2016 aircraft	Aug. 31, 2015 USD ($)
A320 Family [Member]
Long-term Purchase Commitment [Line Items]
Number of aircraft held	89
Airbus [Member] | A320 and A321 [Member]
Long-term Purchase Commitment [Line Items]
Number of aircraft order conversions		10
Number of aircraft with secured debt financing commitments scheduled for delivery	2
Number of delivered aircraft with secured debt financing commitments	13
V2500 SelectOne Engine [Member]
Long-term Purchase Commitment [Line Items]
Number of spare aircraft engines ordered (in aircraft engine) | aircraft_engine	4
PurePower PW1100G-JM Engine [Member]
Long-term Purchase Commitment [Line Items]
Number of spare aircraft engines ordered (in aircraft engine) | aircraft_engine	9
Capital Addition Purchase Commitments [Member]
Long-term Purchase Commitment [Line Items]
Unrecorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | $	$ 104.0
Unrecorded Unconditional Purchase Obligation, Due in 2017 | $	659.0
Unrecorded Unconditional Purchase Obligation, Due in 2018 | $	650.0
Unrecorded Unconditional Purchase Obligation, Due in 2019 | $	679.0
Unrecorded Unconditional Purchase Obligation, Due in 2020 | $	823.0
Unrecorded Unconditional Purchase Obligation, Due in 2021 and beyond | $	$ 803.0
2016 [Member]
Long-term Purchase Commitment [Line Items]
Number of aircraft with secured debt financing commitments scheduled for delivery	1
2016 [Member] | Third Party Lessor [Member]
Long-term Purchase Commitment [Line Items]
Number of Direct Leased Aircraft Ordered From A Third Party	5
2017 [Member]
Long-term Purchase Commitment [Line Items]
Number of aircraft with secured debt financing commitments scheduled for delivery	1
2017-2021 [Member] | Airbus [Member]
Long-term Purchase Commitment [Line Items]
Number of Aircraft without Secured Financing Commitments Scheduled for Delivery	75
Enhanced Equipment Trust Certificate [Member] | Capital Addition Purchase Commitments [Member]
Long-term Purchase Commitment [Line Items]
Debt financing commitments | $			$ 576.6
Enhanced Equipment Trust Certificate [Member] | 2016 [Member] | Capital Addition Purchase Commitments [Member]
Long-term Purchase Commitment [Line Items]
Debt financing commitments | $	$ 38.7
Enhanced Equipment Trust Certificate [Member] | 2017 [Member] | Capital Addition Purchase Commitments [Member]
Long-term Purchase Commitment [Line Items]
Debt financing commitments | $	$ 38.5
Aircraft [Member]
Long-term Purchase Commitment [Line Items]
Number of delivered aircraft with secured debt financing commitments	10
Number of Previously Leased Aircraft Purchased	6
Property and equipment, useful life	25 years
Property and equipment, salvage value percentage	10.00%
Spare Engines [Member]
Long-term Purchase Commitment [Line Items]
Operating leases, lessee, number of leased assets | aircraft_engine	11
Aircraft [Member]
Long-term Purchase Commitment [Line Items]
Operating leases, lessee, number of leased assets	55

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Commitments and Contingencies - Long Term Debt Commitments (Details) - Secured Debt [Member] $ in Millions	Sep. 30, 2016 USD ($)
Debt Instrument [Line Items]
Repayments of interest and fee commitments, remainder of 2016	$ 16.1
Repayments of interest and fee commitments, in 2017	40.6
Repayments of interest and fee commitments, in 2018	36.8
Repayments of interest and fee commitments, in 2019	33.3
Repayments of interest and fee commitments, in 2020	29.7
Repayments of interest and fee commitments, 2021 and beyond	118.3
Long-term Debt, Fiscal Year Maturity [Abstract]
Remainder of 2016	1.6
2017	11.6
2018	8.1
2019	7.4
2020	7.1
2021 and beyond	$ 65.7

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Commitments and Contingencies - Future Minimum Lease Payments Under Noncancelable Operating Leases (Details) $ in Thousands	Sep. 30, 2016 USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
remainder of 2016	$ 61,810
Future Minimum Payments Due, 2017	229,595
Future Minimum Payments Due, 2018	212,431
Future Minimum Payments Due, 2019	189,130
Future Minimum Payments Due, 2020	169,953
Future Minimum Payments Due, 2021 and thereafter	581,370
Total minimum lease payments	1,444,289
Aircraft and Spare Engine Leases [Member]
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
remainder of 2016	50,986
Future Minimum Payments Due, 2017	194,607
Future Minimum Payments Due, 2018	177,717
Future Minimum Payments Due, 2019	158,818
Future Minimum Payments Due, 2020	150,842
Future Minimum Payments Due, 2021 and thereafter	520,857
Total minimum lease payments	1,253,827
Property Facility Leases [Member]
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
remainder of 2016	10,824
Future Minimum Payments Due, 2017	34,988
Future Minimum Payments Due, 2018	34,714
Future Minimum Payments Due, 2019	30,312
Future Minimum Payments Due, 2020	19,111
Future Minimum Payments Due, 2021 and thereafter	60,513
Total minimum lease payments	$ 190,462

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Commitments and Contingencies - Fixed Maintenance Reserve Payments and Other Commitments (Details) $ in Millions	Sep. 30, 2016 USD ($)
Fixed Maintenance Reserve Payments, Aircraft and Related Flight Equipment [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Unrecorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year	$ 1.8
Unrecorded Unconditional Purchase Obligation, Due in 2017	6.6
Unrecorded Unconditional Purchase Obligation, Due in 2018	5.6
Unrecorded Unconditional Purchase Obligation, Due in 2019	4.2
Unrecorded Unconditional Purchase Obligation, Due in 2020	3.9
Unrecorded Unconditional Purchase Obligation, Due in 2021 and beyond	10.2
Reservation System and Advertising Media [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Unrecorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year	1.4
Unrecorded Unconditional Purchase Obligation, Due in 2017	5.2
Unrecorded Unconditional Purchase Obligation, Due in 2018	3.8
Unrecorded Unconditional Purchase Obligation, Due in 2019	0.2
Unrecorded Unconditional Purchase Obligation, Due in 2020	0.2
Unrecorded Unconditional Purchase Obligation, Due in 2021 and beyond	0.0
Airbus [Member] | Aircraft with Increased Seating Capacity [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Unrecorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year	5.0
Unrecorded Unconditional Purchase Obligation, Due in 2017	8.7
Unrecorded Unconditional Purchase Obligation, Due after Two Years	$ 0.0

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Commitments and Contingencies - Commitments (Details) ft² in Thousands, $ in Millions	1 Months Ended
	Sep. 30, 2015 ft² a extension_option	Jul. 31, 2015 USD ($) aircraft seat	Sep. 30, 2016 USD ($)
Hangar Facility [Member] | Operating Lease [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Area of land, hangar site | a	10
Area of hangar facility | ft²	126
Operating lease, initial term	30 years
Operating lease, number of extension options | extension_option	2
Operating lease, extension term	10 years
Estimated future project costs | $			$ 32.0
Airbus [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Costs to reconfigure aircraft seating | $		$ 0.6
Airbus [Member] | A320 [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Number of aircraft reconfigured for increased seating capacity | aircraft		40
Airbus [Member] | A320 [Member] | Minimum [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Number of aircraft seats | seat		178
Airbus [Member] | A320 [Member] | Maximum [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Number of aircraft seats | seat		182

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Commitments and Contingencies - Credit Card Processing Arrangements (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Restricted cash holdbacks	$ 0	$ 0
Maximum Potential Exposure to Cash Holdbacks from Credit Card Processors	$ 281,400,000	$ 250,200,000

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Commitments and Contingencies - Employees (Details) $ in Millions		1 Months Ended		3 Months Ended		9 Months Ended
	Mar. 31, 2016	May 31, 2016	May 31, 2015	Sep. 30, 2016 USD ($) airport	Jun. 30, 2016 USD ($)	Sep. 30, 2016 USD ($) airport	Dec. 31, 2015 USD ($)
Concentration Risk [Line Items]
Number of airports in which entity operates | airport				56		56
Association of Flight Attendants [Member]
Concentration Risk [Line Items]
Tentative collective bargaining agreement, contract term	5 years
Compensation | $					$ 9.6
Ratified Collective Bargaining Agreement, Contract Term		5 years
International Association Of Machinists And Aerospace Workers (IAM) [Member]
Concentration Risk [Line Items]
Tentative collective bargaining agreement, contract term			5 years
Number of airports in which entity operates | airport				1		1
Health Insurance [Member]
Liability for Claims and Claims Adjustment Expense [Line Items]
Accrued health care claims | $				$ 4.6		$ 4.6	$ 3.7
Unionized Employees Concentration Risk [Member] | Number of Employees, Total [Member]
Concentration Risk [Line Items]
Company's employees covered under collective bargaining agreements (as a percent)						72.00%
Unionized Employees Concentration Risk [Member] | Number of Employees, Total [Member] | Air Line Pilots Association, International [Member]
Concentration Risk [Line Items]
Company's employees covered under collective bargaining agreements (as a percent)				26.00%
Unionized Employees Concentration Risk [Member] | Number of Employees, Total [Member] | Association of Flight Attendants [Member]
Concentration Risk [Line Items]
Company's employees covered under collective bargaining agreements (as a percent)				42.00%
Unionized Employees Concentration Risk [Member] | Number of Employees, Total [Member] | Transport Workers Union [Member]
Concentration Risk [Line Items]
Company's employees covered under collective bargaining agreements (as a percent)				1.00%
Unionized Employees Concentration Risk [Member] | Number of Employees, Total [Member] | International Association Of Machinists And Aerospace Workers (IAM) [Member]
Concentration Risk [Line Items]
Company's employees covered under collective bargaining agreements (as a percent)				3.00%

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Fair Value Measurements - Long-term Debt (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Carrying Value	$ 1,008.3	$ 659.3
Senior Loans [Member]
Debt Instrument [Line Items]
Carrying Value	460.1	484.2
Junior Loans [Member]
Debt Instrument [Line Items]
Carrying Value	48.9	54.3
Equipment Notes, Series A [Member]
Debt Instrument [Line Items]
Carrying Value	394.8	95.8
Equipment Notes, Series B [Member]
Debt Instrument [Line Items]
Carrying Value	104.5	25.0
Estimated Fair Value [Member]
Debt Instrument [Line Items]
Estimated Fair Value	1,036.7	652.4
Estimated Fair Value [Member] | Level 3 [Member] | Senior Loans [Member]
Debt Instrument [Line Items]
Estimated Fair Value	477.4	477.8
Estimated Fair Value [Member] | Level 3 [Member] | Junior Loans [Member]
Debt Instrument [Line Items]
Estimated Fair Value	50.5	54.6
Estimated Fair Value [Member] | Level 2 [Member] | Equipment Notes, Series A [Member]
Debt Instrument [Line Items]
Estimated Fair Value	402.7	94.8
Estimated Fair Value [Member] | Level 2 [Member] | Equipment Notes, Series B [Member]
Debt Instrument [Line Items]
Estimated Fair Value	$ 106.1	$ 25.2

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Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 825,904	$ 803,600
Investment securities	100,083
Total assets	925,987	803,600
Total liabilities	0	0
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	825,904	803,600
Investment securities	100,083
Total assets	925,987	803,600
Total liabilities	0	0
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Investment securities	0
Total assets	0	0
Total liabilities	0	0
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Investment securities	0
Total assets	0	0
Total liabilities	$ 0	$ 0

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Long-term Debt (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Debt Instrument [Line Items]
Long-term Debt, Gross	$ 1,008,300		$ 1,008,300		$ 659,300
Less current maturities	84,443		84,443		49,637
Less unamortized discounts, net	29,100		29,100		13,000
Long-term debt, less current maturities	894,809		894,809		596,693
Repayments of debt obligations	10,000	$ 7,600	29,600	$ 15,800
Senior Loans [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	$ 460,100		$ 460,100		484,200
Long-term Debt, Weighted Average Interest Rate	4.10%	4.10%	4.10%	4.10%
Junior Loans [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	$ 48,900		$ 48,900		54,300
Long-term Debt, Weighted Average Interest Rate	6.90%	6.90%	6.90%	6.90%
Equipment Notes, Series A [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	$ 394,800		$ 394,800		95,800
Long-term Debt, Weighted Average Interest Rate	4.03%		4.03%
Equipment Notes, Series B [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	$ 104,500		$ 104,500		$ 25,000
Long-term Debt, Weighted Average Interest Rate	4.38%		4.38%

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Long-term Debt - Future Maturities (Details) $ in Millions	Sep. 30, 2016 USD ($)
Debt Disclosure [Abstract]
remainder of 2016	$ 34.7
2017	84.6
2018	80.4
2019	79.1
2020	77.3
2021 and thereafter	652.2
Total debt principal payments	$ 1,008.3

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Long-term Debt - EETCs (Details) $ in Millions	1 Months Ended
	Aug. 31, 2015 USD ($) aircraft trust	Sep. 30, 2016 USD ($) aircraft
Airbus [Member] | A320 and A321 [Member]
Debt Instrument [Line Items]
Number of aircraft with secured debt financing commitments scheduled for delivery		2
Number of delivered aircraft with secured debt financing commitments		13
Enhanced Equipment Trust Certificate [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount | $		$ 499.3
Enhanced Equipment Trust Certificate [Member] | Capital Addition Purchase Commitments [Member]
Debt Instrument [Line Items]
Number of pass-through trusts | trust	2
Debt financing commitments | $	$ 576.6
Enhanced Equipment Trust Certificate [Member] | Airbus [Member] | A320 and A321 [Member]
Debt Instrument [Line Items]
Number of aircraft with secured debt financing commitments scheduled for delivery	15
Enhanced Equipment Trust Certificate [Member] | Airbus [Member] | A320 [Member]
Debt Instrument [Line Items]
Number of delivered aircraft with secured debt financing commitments		3
Enhanced Equipment Trust Certificate [Member] | Airbus [Member] | A321 [Member]
Debt Instrument [Line Items]
Number of aircraft with secured debt financing commitments scheduled for delivery		2
Number of delivered aircraft with secured debt financing commitments		10

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Long-term Debt - Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Debt Instrument [Line Items]
Commitment fees	$ 32	$ 0	$ 97	$ 0
Amortization of debt discounts	979	340	2,289	729
Total	11,360	5,905	29,579	13,012
Senior Loans [Member]
Debt Instrument [Line Items]
Interest expense, term loans	4,917	4,639	14,929	10,260
Junior Loans [Member]
Debt Instrument [Line Items]
Interest expense, term loans	879	926	2,721	2,023
Equipment Notes, Series A [Member]
Debt Instrument [Line Items]
Interest expense, term loans	3,538	0	7,419	0
Equipment Notes, Series B [Member]
Debt Instrument [Line Items]
Interest expense, term loans	$ 1,015	$ 0	$ 2,124	$ 0

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Subsequent Event (Details)	1 Months Ended
	Oct. 25, 2016 aircraft
Subsequent Event [Member] | Airbus [Member] | A-320-Neo [Member]
Subsequent Event [Line Items]
Number of Aircrafts Delivered	2