Spirit Airlines Warns About Loss and Revenue; Stock Sinks To All-Time Low

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]