A Spirit Airlines aircraft undergoes operations in preparation for departure at Austin-Bergstrom International Airport in Austin, Texas, on Feb. 12, 2024.
Brandon Bell | Getty Images
Spirit Airlines Apple Inc. said Tuesday it will post a larger-than-expected loss in the fourth quarter as revenue fell short of its forecast.
Spirit expects an adjusted loss of between $160 million and $173 million for the three months ended June 30, compared with a previous estimate of a loss of less than $145 million. The company expects sales of $1.28 billion, down from expectations of at least $1.32 billion.
Spirit said non-ticket revenue, which represents the many fees associated with its ultra-low fares, came in “several dollars lower than expected” per passenger.
Shares of the budget airline fell about 6% in extended trading after the airline issued its update to investors in a securities filing.
The airline, along with its competitors, Frontier AirlinesBritish Airways has recently revamped the way it sells tickets by offering bundles that include things like seat allocation and hand luggage that it used to sell on demand. This brings its business practices more in line with larger competitors.
“As the company progresses with its transformation strategy, it expects that over time it will be able to achieve improvement in total revenue per passenger segment,” Spirit said.
The company faces a number of challenges, including oversupply in the U.S. domestic market, an engine recall from supplier Pratt & Whitney that has grounded dozens of planes, and the fallout from a federal judge's ruling blocking a planned takeover by Boeing. jetblue airlines Earlier this year.
