Spirit Airlines Expects Q3 Total Revenue Of $1.155B - $1.175B, Est $1.331B
Portfolio Pulse from Benzinga Newsdesk
Spirit Airlines expects Q3 total revenue to be between $1.155B and $1.175B, below the estimated $1.331B. The company faces challenges from increased industry capacity and changes in ancillary pricing. Additionally, the elimination of change and cancellation fees is expected to impact revenue per passenger segment negatively through 2024. A recent operational disruption due to a CrowdStrike IT outage resulted in the cancellation of 470 flights, with an estimated $7.2 million negative impact on Q3 operating income.
August 01, 2024 | 10:23 am
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Spirit Airlines expects Q3 revenue to be below estimates due to increased industry capacity, pricing changes, and elimination of fees. An IT outage also negatively impacted Q3 operating income by $7.2 million.
The lower-than-expected revenue guidance, combined with challenges from increased industry capacity, pricing changes, and the elimination of fees, is likely to negatively impact Spirit Airlines' stock price in the short term. Additionally, the recent IT outage causing a $7.2 million loss further exacerbates the negative outlook.
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