On February 12, 2024, a Spirit Airlines aircraft prepared for takeoff at Austin-Bergstrom International Airport in Austin, Texas.
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spirit airlines The company said on Tuesday it would post a larger-than-expected loss last quarter as revenue missed expectations.
Spirit expects adjusted losses in the three months ended June 30 to be between $160 million and $173 million, compared with its previous forecast of a loss of no more than $145 million. It forecast sales of $1.28 billion, below expectations of at least $1.32 billion.
Spirit said substantial charges from non-ticket revenue (its fares have been at their lowest in years) accounted for “a few dollars less than expected” per passenger.
The airline’s shares fell about 6% in after-hours trading after the airline issued an investor update. Securities filings.
The airline, as well as rival low-cost airlines Frontier Airlines, recently revamped the way it sells tickets, offering bundles that include things like seat assignments and carry-on bags, whereas it previously sold them a la carte. This puts it more in line with its larger competitors.
“As the company’s transformation strategy progresses, it expects to be able to drive improvements in total revenue for each passenger segment over time,” Spirit said.
The company faces several challenges, such as oversupply in the U.S. domestic market, an engine recall from supplier Pratt & Whitney that grounded dozens of planes, and the fallout from a federal judge’s ruling blocking planned acquisitions. JetBlue Airways earlier this year.
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