Spirit Airlines (SAVE - Free Report) posted a significant rise in air traffic for the month of July. Traffic – measured in revenue passenger miles (RPMs) – came in at 2.35 billion, up 17.8% on a year-over-year basis. Consolidated capacity (or available seat miles/ASMs) also expanded 22.7% to 2.72 billion.
However, load factor or percentage of seats filled by passengers decreased to 86.3% from 89.8% recorded last July. Load factor fell as traffic growth was outpaced by capacity expansion for the month.
In fact, this Miramar, FL-based low-cost carrier registered a completion factor (system wide) of 97.2% for the month with 73.5% flights on schedule.
Notably, for the first seven months of 2017, Spirit Airlines registered a 12.4% increase in RPMs to 14.18 billion and a 15.5% rise in ASMs to 16.9 billion, both on a year-over-year basis. But load factor fell 240 basis points to 83.9% in the period.
Price Performance
Shares of Spirit Airlines have underperformed its industry in the last three months mainly due to the dispute with its pilots. The stock was down 31% compared with the industry’s decline of 2.4% during the same period.
In fact, the dispute with pilots was largely responsible for Spirit Airlines issuing a below-par forecast with respect to total revenue per available seat miles (TRASM: a key measure of unit revenue) for the third quarter. The metric is expected to decline in the band of 2% to 4% on a year-over-year basis, as well. Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We note that passenger related issues have also hurt other U.S. carriers like American Airlines Group (AAL - Free Report) , Delta Air Lines (DAL - Free Report) and United Continental Holdings (UAL - Free Report) so far this year.
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Spirit Airlines (SAVE - Free Report) posted a significant rise in air traffic for the month of July. Traffic – measured in revenue passenger miles (RPMs) – came in at 2.35 billion, up 17.8% on a year-over-year basis. Consolidated capacity (or available seat miles/ASMs) also expanded 22.7% to 2.72 billion.
However, load factor or percentage of seats filled by passengers decreased to 86.3% from 89.8% recorded last July. Load factor fell as traffic growth was outpaced by capacity expansion for the month.
In fact, this Miramar, FL-based low-cost carrier registered a completion factor (system wide) of 97.2% for the month with 73.5% flights on schedule.
Notably, for the first seven months of 2017, Spirit Airlines registered a 12.4% increase in RPMs to 14.18 billion and a 15.5% rise in ASMs to 16.9 billion, both on a year-over-year basis. But load factor fell 240 basis points to 83.9% in the period.
Price Performance
Shares of Spirit Airlines have underperformed its industry in the last three months mainly due to the dispute with its pilots. The stock was down 31% compared with the industry’s decline of 2.4% during the same period.
In fact, the dispute with pilots was largely responsible for Spirit Airlines issuing a below-par forecast with respect to total revenue per available seat miles (TRASM: a key measure of unit revenue) for the third quarter. The metric is expected to decline in the band of 2% to 4% on a year-over-year basis, as well. Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We note that passenger related issues have also hurt other U.S. carriers like American Airlines Group (AAL - Free Report) , Delta Air Lines (DAL - Free Report) and United Continental Holdings (UAL - Free Report) so far this year.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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