Spirit Airlines lowers second-quarter outlook on weak non-ticket revenue (updated)

Spirit Airlines

16/07/2024 22:10

(Adds forecast details, shares)
       July 16 (Reuters) - Spirit Airlines  SAVE.N  on Tuesday
cut its revenue outlook for the second quarter, citing
lower-than-expected non-ticket revenue, sending its shares down
more than 6% in extended trading.
        The company now projects quarterly revenue to be $1.28
billion, compared with its earlier estimate of between $1.32
billion and $1.34 billion, the ultra-low-cost carrier said in a
regulatory filing.
  
        Spirit said lower non-ticket revenue from ancillary
services was a result of competitive pressures in the market.
  
        The non-ticket revenue per passenger segment is
estimated to be $64, "several dollars" below its initial
expectations.
  
        Additionally, Spirit estimates $37 million in AOG
(aircraft on ground) credit from Pratt & Whitney. The airline
gets a monthly 
    credit
     as compensation for Spirit being unable to use aircraft
with engine issues.
  

 (Reporting by Pratyush Thakur in Bengaluru; Editing by Maju
Samuel)
 ((pratyush.thakur@thomsonreuters.com;))