Wall Street expects a year-over-year decline in earnings on lower revenues when Spirit (SAVE) reports results for the quarter ended June 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move ...

Fri JUL 19 2024 12:38 PM ET 18.00 14.00 10.00 6.00 2.77 Jul In no huge surprise, Spiritt Airlines, Inc. (NYSE:SAVE) is set to report a weak Q2 as domestic yieds dipped due to overcapacity. The airtline sector is quickly adjusting capacity to match what's actually record passenger travel in a sign of how the sector has evolved over time. My investment thesis remains Ultra Bullish on the stock with a fare turnaround set to occur in the next 30 days. Source: Finviz Spirit Airlines released weak preliminary num ...

Core Viewpoint - Spirit Airlines is facing significant challenges due to softening demand trends in the airline industry, leading to a downward revision of its financial outlook and concerns about its long-term viability [1][2][3]. Financial Outlook - Spirit Airlines expects to report $1.28 billion in revenue for the second quarter, a decrease from previous guidance of $1.32 billion to $1.34 billion [4]. - The airline anticipates an adjusted loss of $173 million to $160 million, which is a significant increase from the earlier loss estimate of $145 million to $120 million [4]. - The company ended the first quarter with $1.2 billion in cash, but projections indicate this amount will likely decrease in the second quarter [10]. Market Reaction - Following the negative outlook and analyst downgrade, Spirit's shares dropped by 11% in late afternoon trading [8]. - There is a heavy short interest in Spirit's stock, indicating potential volatility in the near term [6]. Company-Specific Issues - Spirit Airlines is dealing with the aftermath of its proposed sale to JetBlue Airways being blocked by regulators, which has created additional operational challenges [9]. - The airline is also affected by an RTX engine issue that has grounded part of its fleet, further complicating its recovery efforts [9]. Analyst Insights - TD Cowen analyst Thomas Fitzgerald downgraded Spirit to a sell from a hold, expressing skepticism about the company's path to profitability through 2026 and highlighting the risk of restructuring or bankruptcy [10].

Core Insights - Spirit Airlines has warned that its second-quarter loss will exceed previous expectations, with revenue also falling short of earlier forecasts [1] - The airline attributes these disappointing results to lower-than-expected non-ticket revenue, which includes fees for baggage and seat selections [2] - Following this announcement, Spirit Airlines' shares dropped to an all-time low, reflecting a significant decline in market confidence [1][2] Financial Performance - The company anticipates an adjusted operating loss of between $160 million and $173 million for the second quarter, compared to an earlier estimate of $121 million to $145 million [1] - Projected revenue for the second quarter is now expected to be $1.28 billion, down from a previous outlook of $1.32 billion to $1.34 billion [1] Non-Ticket Revenue Analysis - Non-ticket revenue per passenger was reported at $64, which is several dollars lower than initial estimates [2] - The underperformance in non-ticket revenue is attributed to changes in the competitive marketplace affecting ancillary pricing [2] Market Reaction - Spirit Airlines' shares fell nearly 11% to $2.82, marking an all-time low, and the stock has lost over 80% of its value this year [2]

Spirit Airlines lowered its revenue estimate, citing a decline in non-ticket revenue. That refers to things like bag fees and picking your own seat, which can cost hundreds of dollars. In June, United's CEO criticized the ultra-low-cost carrier business model, saying customers "hate it." Insider Today NSIDER TODA Sign up to get the inside scoop on today's biggest stories in markets, tech, and business — delivered daily. Read preview Bull Thanks for signing up! Access your favorite topics in a personalized f ...

Core Viewpoint - Spirit Airlines is expected to report a larger-than-anticipated loss for the last quarter due to revenue falling short of expectations [1] Company Summary - Spirit Airlines shares declined approximately 6% in after-hours trading following the release of its investor update in a securities filing [1]

"We are very pleased that Richard Wallman has agreed to join our board," said H. McIntyre "Mac" Gardner, Spirit's Chairman of the Board. "Richard is a wise and respected business leader, with a deep background in financial management, corporate development, and diverse experience on public and private company boards. Richard will be a tremendous resource to the Spirit management team." Spirit Airlines (NYSE: SAVE) is committed to delivering the best value in the sky. We are the leader in providing customiza ...

Core Points - Spirit Airlines celebrates its 25th anniversary at Los Angeles International Airport (LAX) with special promotional fares starting at $25 one-way for flights booked on July 12, 2024, for travel between August 13 and October 10, 2024 [12] - The airline is offering bonus points for members of its Free Spirit® loyalty program, providing 1,500 bonus points for roundtrip flights and 750 bonus points for one-way flights to and from LAX, with travel booked by August 15, 2024, and completed by October 31, 2024 [2][15] - Spirit Airlines has made significant investments in its LAX service over the past five years, including launching new routes and increasing flight frequency to various destinations [8][7] Service and Offerings - Spirit Airlines operates 40 nonstop flights daily to 25 destinations from LAX, maintaining a focus on providing customizable travel options through its unbundled fare structure [5][7] - The airline's Fit Fleet® is noted for being one of the youngest and most fuel-efficient in the U.S., contributing to its commitment to sustainability [5][14] - Recent enhancements to the guest experience include no change or cancel fees, increased checked bag weight allowance to 50 pounds, and cabin upgrades for improved comfort [14] Community Engagement - In conjunction with its anniversary, Spirit Airlines donated $25,000 to the nonprofit organization TreePeople, supporting sustainable urban ecosystems in the Greater Los Angeles area [13]

Let's delve deeper. Unimpressive Price Performance: Spirit Airlines has declined 82.7% in the past year against its industry's 7.3% growth. In the first quarter of 2024,Labor costs, comprising salaries and benefits (accounting for 29.3% of the total operating expenses), rose by 10.9% year over year to $431.5 million in the first quarter of 2024. Stocks to Consider The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters ...

Spirit's challenges stand out when compared to the "big four" U.S. airlines. Delta, Southwest, American, and United all reported positive sales growth in their most recent quarters. Moreover, they were all profitable in 2023. But the stock is dirt cheap right now. It trades a price-to-sales ratio of just 0.076. This is close to the cheapest shares have ever been. It appears as though the pessimism has never been higher. In order to try and stabilize the business, the management team is making cost cuts. And ...