Spirit Airlines Estimates Its FY25 Capacity Will Be Down Mid-Teens Y/Y; Q3 Capacity Down 1.2 %, Estimates Q4 Capacity To Be Down Approximately 20%
Portfolio Pulse from Benzinga Newsdesk
Spirit Airlines projects a significant decrease in capacity for FY25 and Q4 2024 due to aircraft sales, engine issues, and fleet changes. However, the company expects improved operating margins in Q3 2024 due to better-than-expected revenue from its transformation plan.
October 24, 2024 | 9:23 pm
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Spirit Airlines anticipates a mid-teens capacity reduction for FY25 and a 20% decrease in Q4 2024 due to aircraft sales, engine issues, and fleet changes. However, Q3 2024 margins are expected to improve due to strong revenue from its transformation plan.
The capacity reduction is a negative factor, potentially impacting revenue negatively. However, the improved operating margin in Q3 2024 due to strong revenue from the transformation plan offsets this, leading to a neutral short-term impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100