Spirit Airlines Plunges 4% on Q3 Guidance Cut

Spirit Airlines (NYSE:SAVE) revised its Q3 revenue outlook, leading to a nearly 4% decline in pre-market trading today.

Spirit Air now projects Q3 sales to range from $1.245 billion to $1.255 billion, marking a decrease from the previous range of $1.3 billion to $1.32 billion.

The company also expects an adjusted operating margin between -14.5% and -15.5%, down from the earlier estimate of -5.5% to -7.5%. This is below analysts' expectations of -7.2%. Additionally, they anticipate fuel costs per gallon to be $3.06, up from the previous estimate of $2.80. The company anticipates a 13.4% increase in available seat miles.

The company attributed these adjustments to heightened promotional activity featuring substantial discounts for travel bookings from the second half of the third quarter through the pre-Thanksgiving period. Additionally, rising fuel prices have contributed to the changes.