Spirit Airlines Predicts Quarterly Loss as Revenue Declines Short of Anticipations

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By Stephan Mann
Published July 17, 2024 9:00 AM EST

Spirit Airlines is bracing for a steeper quarterly loss than initially forecasted, attributing the shortfall to disappointing revenue figures. On Tuesday, the budget airline projected an adjusted loss of between $160 million and $173 million for the quarter ending June 30, a notable increase from the earlier estimate of $145 million. Revenue is expected to hit $1.28 billion, falling short of $1.32 billion.

The company reported that its non-ticket revenue, which includes various ancillary fees, was "several dollars less than expected" per passenger, contributing to the revenue loss. Following the announcement, Spirit's stock skated by approximately 6% in after-hours trading.

Spirit and Frontier Airlines have revamped their ticketing strategies to accommodate market modifications. They now deliver bundles that include seat assignments and carry-on bags, aligning more closely with industry standards set by more prominent contenders.

Despite the current challenges—including a staggering U.S. domestic market, an engine recall from Pratt & Whitney impacting myriad aircraft, and a recent federal judge's ruling blocking its planned acquisition by JetBlue—Spirit remains optimistic. The airline hopes its ongoing conversion strategy will eventually drive revenue improvements per passenger segment.

About the author

Stephan Mann

A dedicated travel content author at FlyOfinder since 2017. Stephan Mann brings a wealth of knowledge and experience to his writing. His engaging storytelling not only captivates but also guides and informs. Stephan's writing helps readers confidently plan their travels, ensuring every journey is filled with excitement and memorable experiences.