Spirit Airlines Sees Total Revenue For Q2 2024 Is Estimated To Be ~$1.28B Vs $1.33B Est.; Estimates Non-Ticket Revenue Per Passenger Segment Will Be About $64 For Q2
Portfolio Pulse from Benzinga Newsdesk
Spirit Airlines (SAVE) has revised its Q2 2024 revenue estimate to $1.28 billion, down from $1.33 billion, primarily due to lower non-ticket revenue. The company also reported that non-ticket revenue per passenger segment will be about $64, lower than anticipated. Spirit is executing a transformation plan to align with market dynamics and expects future revenue improvements. Additionally, Spirit has an agreement with International Aero Engines, LLC for monthly credits due to engine issues, which have benefited liquidity by $94 million year-to-date. The adjusted operating margin for Q2 2024 is estimated to be between -13.5% and -12.5%.
July 16, 2024 | 8:29 pm
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Spirit Airlines has revised its Q2 2024 revenue estimate to $1.28 billion, down from $1.33 billion, primarily due to lower non-ticket revenue. The company is also facing pressure on ancillary pricing due to competitive market changes. Despite these challenges, Spirit is executing a transformation plan to improve future revenue. The adjusted operating margin for Q2 2024 is estimated to be between -13.5% and -12.5%.
The downward revision in revenue estimates and lower non-ticket revenue per passenger segment indicate financial underperformance, which is likely to negatively impact the stock price in the short term. The negative adjusted operating margin further supports this outlook.
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