A Spirit Airways plane undergoes operations in preparation for departure on the Austin-Bergstrom Worldwide Airport in Austin, Texas, on Feb. 12, 2024.
Brandon Bell | Getty Photos
Spirit Airlines mentioned Tuesday it might publish a wider-than-expected loss for the final quarter due to income that got here in wanting its expectations.
Spirit expects to report an adjusted lack of between $160 million and $173 million for the three months ended June 30, in contrast with a earlier estimate for a lack of not more than $145 million. It expects gross sales of $1.28 billion, down from a forecast of at the least $1.32 billion.
Spirit mentioned non-ticket income, which accounts for the myriad charges lengthy related to its rock-bottom fares, got here in “a number of {dollars} decrease than anticipated” per passenger.
Shares of the finances airline have been down about 6% in prolonged buying and selling after the airline launched its investor replace in a securities filing.
The airline, together with rival Frontier Airlines, has not too long ago revamped the way it sells tickets by providing bundles that embrace issues like seat assignments and carry-on baggage that it used to promote a la carte. That brings its enterprise apply extra in step with bigger rivals.
“Because the Firm progresses on its transformation technique, it anticipates that over time it is going to be capable of drive enchancment in complete income per passenger phase,” Spirit mentioned.
The corporate is dealing with a number of challenges, comparable to oversupplied U.S. home market, an engine recall from provider Pratt & Whitney that has grounded dozens of plane and the fallout of a federal choose’s ruling to dam a deliberate acquisition by JetBlue Airways earlier this yr.