Here's Why Spirit Airlines (SAVE) Stock Is Moving

Spirit Airlines Inc SAVE shares are trading lower by 2.06% to $18.79 during Tuesday's session. Shares of airline stocks are trading lower in sympathy with Alaska Air, which fell after reporting second-quarter earnings and guiding 0-3% topline growth in the third quarter.

Investors often view the performance of one airline as indicative of broader industry trends. If Alaska Airlines' guidance suggests a cautious approach to the third quarter, it might be interpreted as a reflection of potential headwinds or challenges facing the entire airline industry.

This perception could lead to a negative sentiment towards airline stocks, including Spirit Airlines.

What Happened?

Alaska Air shares declined by 9.22% on Tuesday following the company's less optimistic outlook, projecting 0%-3% topline growth for the third quarter.

In the second quarter of FY23, ALK reported a 7% year-over-year increase in operating revenue, reaching $2.84 billion, surpassing the consensus estimate of $2.77 billion. Passenger revenues also showed improvement, growing by 7% Y/Y to $2.6 billion.

Adjusted EPS for the quarter was $3.00, outperforming the previous year's $2.19 in 2Q22, and exceeding the consensus of $2.70.

Moreover, the company achieved adjusted pre-tax margins of 18.3%, a 250 basis points improvement compared to 2Q19...Read More

According to data from Benzinga Pro, SAVE has a 52-week high of $25.68 and a 52-week low of $14.41.