Shares of Spirit Airlines Incorporated SAVE gained nearly 2 percent in Monday's after-hours session following an update to its first quarter guidance.
Spirit Airlines updated its operating margin guidance for the quarter to approximately 21.5 percent, up from a previous guidance range of 19.0 to 20.5 percent. The company cited its improved margin to revenue coming in higher than expected.
Spirit Airlines continued that its adjusted cost per available seat mile (CASM) excluding fuel for the quarter is expected to be down around 2 percent versus a prior guidance range of down 2.5 to 3.5 percent. The company cited an accrual of a one-time ratification incentive payment of $8.4 million. Absent the accrual, the company's adjusted CASM excluding fuel would have been lower by around 4.5 percent.
The company also said it expects its total revenue per available seat mile (TRASM) to decline approximately 14 percent in the quarter from last year's levels. Despite the decline, management noted that this is better than previously expected as its revenue management strategies continued to "Deliver improvement."
Finally, Spirit Airlines said it saw a quarter-to-quarter sequential decline in average ticket revenue per passenger segment.
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