Bulletin
Investor Alert

London Markets Open in:

Market Pulse Archives

March 10, 2020, 8:06 a.m. EDT

Spirit Airlines withdraws 2020 guidance, sees 'significant pressure' on fares from coronavirus outbreak

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Spirit Airlines Inc. (SAVE)
  • X
    U.S. Global Jets ETF (JETS)
  • X
    S&P 500 Index (SPX)

or Cancel Already have a watchlist? Log In

By Tomi Kilgore

Spirit Airlines Inc. /zigman2/quotes/205782179/composite SAVE +19.46% said Tuesday that investors should no longer rely on its 2020 financial guidance given the impact of the coronavirus outbreak. The discount air carrier said at the J.P. Morgan Industrials Conference that it has seen "significant pressure" on fares since the end of February and "modest" pressure on load factor. The stock rose 6.7% in premarket trading after fall 4.9% on Monday. The company now estimates March load factor of 81.4%, after load factor of 85.2% on March 8. The company said it was cutting its April capacity to be up 9% from a year ago, compared with the original schedule to be up 14%, and was assessing capacity cuts for May. Although the company has seen "steep declines" in yields since late February, declining fuel prices have helped offset the yield pressure. First-quarter cost per available seat mile (CASM) excluding fuel is now expected to be up 3% from a year ago, down from previous guidance of a rise of 3.5% to 4.5%. Spirit's stock has plunged 44.0% over the past three months through Monday, while the U.S. Global Jets ETF /zigman2/quotes/207744796/composite JETS +7.31% has tumbled 34.4% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +1.36% has lost 12.3%.

/zigman2/quotes/205782179/composite
US : U.S.: NYSE
$ 17.31
+2.82 +19.46%
Volume: 61.74M
June 3, 2020 4:00p
P/E Ratio
4.72
Dividend Yield
N/A
Market Cap
$1.53 billion
Rev. per Employee
$431,115
loading...
/zigman2/quotes/207744796/composite
US : U.S.: NYSE Arca
$ 17.18
+1.17 +7.31%
Volume: 11.29M
June 3, 2020 4:00p
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,122.87
+42.05 +1.36%
Volume: 3.16B
June 3, 2020 5:18p
loading...

This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.