Why Spirit Airlines Stock Is Trading Lower Wednesday

Spirit Airlines, Inc. SAVE shares are trading lower on Wednesday after the company issued soft 2024 fiscal year second quarter revenue guidance.

The Details: The airline company sees total revenue for the second quarter at about $1.28 billion versus analyst estimates of $1.33 billion.

Spirit explained that non-ticket revenue for the quarter did worse than expected. The company believes this is linked to pricing pressure on additional services due to shifts in the market.

Spirit anticipates non-ticket revenue per passenger segment to be about $64 which is several dollars lower than expected. However, ticket revenue per segment was in line with the company’s expectations.

Analyst Changes: Following the soft second quarter revenue guidance announcement, several analyst issued price target adjustments.

• B of A Securities analyst Andrew Didora maintained Spirit Airlines with a Underperform and lowers the price target from $3.25 to $2.75.
• TD Cowen analyst Helane Becker downgraded Spirit Airlines from Hold to Sell and announces $2 price target.

See Also: Boeing’s 737 MAX Crisis Ripple Effects Disrupt Airlines, Suppliers

SAVE Price Action: At the time of publication, Spirit Airlines shares are trading 10.6% lower at $2.82, according to data from Benzinga Pro.

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