Spirit Airlines is bracing for a steeper quarterly loss than initially forecasted, attributing the shortfall to disappointing revenue figures. On Tuesday, the budget airline projected an adjusted loss of between $160 million and $173 million for the quarter ending June 30, a notable increase from the earlier estimate of $145 million. Revenue is expected to hit $1.28 billion, falling short of $1.32 billion.
The company reported that its non-ticket revenue, which includes various ancillary fees, was "several dollars less than expected" per passenger, contributing to the revenue loss. Following the announcement, Spirit's stock skated by approximately 6% in after-hours trading.
Spirit and Frontier Airlines have revamped their ticketing strategies to accommodate market modifications. They now deliver bundles that include seat assignments and carry-on bags, aligning more closely with industry standards set by more prominent contenders.
Despite the current challenges—including a staggering U.S. domestic market, an engine recall from Pratt & Whitney impacting myriad aircraft, and a recent federal judge's ruling blocking its planned acquisition by JetBlue—Spirit remains optimistic. The airline hopes its ongoing conversion strategy will eventually drive revenue improvements per passenger segment.