Spirit Airlines shares slid more than 9 per cent in morning trade in New York on Monday on weak forecast for second quarter (Q2) revenue.
At 12:00 pm EDT, the Spirit Airlines stock was at $3.3401, down 9.97 per cent.
The airline, impacted by issues with RTX’s Pratt & Whitney Geared Turbofan engines, predicted weak Q2 revenue on slow improvement in domestic demand and grounding of dozens of its aircraft.
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Spirit Airlines said that while the domestic environment is improving, to date but it has improved at a slower rate than the company had expected.
The US airline forecast second quarter revenue between $1.32 billion and $1.34 billion.
In April this year, the airline reached a deal with planemaker Airbus to postpone all aircraft deliveries scheduled from the second quarter of 2025. It also planned to furlough about 260 pilots.
The carrier estimates it will average about 25 grounded aircraft throughout 2024.
Spirit Airlines said it believes that along with compensation for its grounded aircraft, deferred jet deliveries and cost savings will improve its cash levels by $450 million to $550 million in 2024.
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“Spirit’s advisers have started discussions with our loyalty bondholders and convert holders that come due in September 2025 and May 2026, respectively, and expect a resolution at some point this summer,” Spirit Airlines chief financial officer Scott Haralson said.
In the first quarter ended March 31, the company lost $1.46 per share.
Its total revenue fell 6.2 per cent to $1.27 billion.
At 11:23 a.m. ET, the Dow Jones Industrial Average was up 57.20 points, or 0.15 per cent, to 38,732.88, the S&P 500 gained 29.54 points, or 0.58 per cent, to 5,157.33 and the Nasdaq Composite rose 108.37 points, or 0.67 per cent, to 16,264.70.
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Published: 06 May 2024, 09:13 PM IST
