Why Spirit Airlines Stock Is Trading Lower Wednesday

Spirit Airlines, Inc. (NYSE: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