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.
Photo: Wikimedia Commons
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