Spirit Airlines The company said on Tuesday that it could report a larger-than-expected loss for the most recent quarter because revenue fell in need of expectations.
Spirit expects an adjusted lack of between $160 million and $173 million for the three months to June 30. It had previously expected a lack of not more than $145 million. Revenue is predicted to be $1.28 billion, in comparison with the forecast of at the least $1.32 billion.
Spirit said non-ticket sales revenue, which covers the myriad fees which have long been related to its rock-bottom fares, was “several dollars lower than expected” per passenger.
Shares of the low-cost airline fell about 6% in prolonged trading after the airline released its investor update in a Securities registration.
The airline and its competitor Border airlinesrecently overhauled the way in which it sells tickets and now offers packages that include things like seat reservations and carry-on luggage that it previously sold a la carte, bringing its business practices more in step with those of larger rivals.
“The company believes that as it executes its transformation strategy, it can deliver improvements in overall revenue per passenger segment over time,” Spirit said.
The company faces several challenges, including oversupply within the US domestic market, an engine recall by supplier Pratt & Whitney that grounded dozens of aircraft, and the fallout from a federal judge’s decision to dam a planned takeover by JetBlue Airways earlier this 12 months.
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