A Spirit Airlines aircraft prepares for departure at Austin-Bergstrom International Airport in Austin, Texas, February 12, 2024.
Brandon Bell | Getty Images
Spirit Airlines The company on Tuesday reported a wider-than-expected fourth-quarter loss as revenue fell short of expectations.
Spirit Airlines now expects an adjusted loss of $160 million to $173 million for the three months ending June 30, down from its previous forecast of a loss of no more than $145 million. The airline now expects revenue of $1.28 billion, down from expectations of at least $1.32 billion.
Spirit Airlines said non-ticket revenue, which accounts for the myriad fees and charges that have long been tied to the airline’s ultra-low fares, was “several dollars lower than expected” per passenger.
Shares of the low-cost carrier fell about 6% in after-hours trading after the airline updated investors in a securities filing.
The airline is a rival Frontier Airlinesrecently revamped the way it sells tickets, bundling things that previously were sold separately, like seat assignments and carry-on bags, bringing its business practices more in line with those of its larger competitors.
“As we progress through our transformation strategy, we expect to be able to drive increased total revenue per passenger segment over time,” Spirit said.
The company faces several challenges, including an oversupplied U.S. domestic market, an engine recall by supplier Pratt & Whitney that has grounded dozens of aircraft, and a federal court injunction blocking its takeover plans. JetBlue Earlier this year.
