A Spirit Airlines aircraft operates in preparation for departure at Austin-Bergstrom International Airport on February 12, 2024 in Austin, Texas.
Brandon Bell | Getty Images
Spirit Airlines on Tuesday it said it would post a wider-than-expected loss in the last quarter as revenue came in below expectations.
Spirit expects to report an adjusted loss of between $160 million and $173 million for the three months ended June 30, down from a previous forecast that the loss would not exceed $145 million. It expects sales of $1.28 billion, down from a forecast of at least $1.32 billion.
Spirit said non-ticket revenue, which long accounts for the myriad fees associated with its lowest fares, was “several dollars below estimates” per passenger.
Shares of the budget airline fell nearly 6% in extended trading after the airline released its latest information to investors. Securities Filings.
The airline has joined forces with its rival company Frontier Airlinesrecently changed the way it sells tickets, offering bundles that include things like seat assignments and carry-on bags that it previously sold a la carte, bringing its business practices more in line with larger competitors.
Spirit said “as the company progresses on its transformation strategy, it expects to be able to improve its total revenue per passenger segment over time.”
The company is facing a number of challenges, including oversupply in the U.S. domestic market, an engine recall from supplier Pratt & Whitney that has grounded dozens of planes, and the fallout from a federal judge’s decision to block a planned takeover. JetBlue Airways earlier this year.
