Spirit Airlines, Inc. (SAVE - Free Report) has lost 4.51% in a year, significantly underperforming its industry’s 32.85% gain in the period.
This downside was primarily due to the airline’s dispute with its pilots. Consequently, the carrier had to cancel multiple flights resulting in customer dissatisfaction. As a result of the disruption in services, the company had to incur heavy costs to the tune of $45 million, pertaining to passenger re-accommodation and other factors.
As a matter of concern, this pilot dispute even hurt Spirit Airlines’ second-quarter results. The carrier reported lower-than-expected revenues in the quarter. Also, cost per available seat miles, excluding fuel (CASM) climbed 10% in the second quarter. Adding further to its woes, the tiff is anticipated to be a drag on the company’s third-quarter results too. Plus, the decline in load factor (percentage of seats filled by customers) in July due to capacity overexpansion is a cause for worry.
The company has issued a disappointing guidance with respect to total revenue per available seat miles (TRASM: a key measure of unit revenue) for the third quarter due to pricing and competitive pressures. The metric is expected to decline in the band of 2-4% in the third quarter of 2017 on a year-over-year basis.
Considering such a gloomy scenario, we believe investors would do well to dump this Zacks Rank #5 (Strong Sell) stock from their portfolios at the moment.
Zacks Rank & Key Picks
Some better-ranked stocks in the airline space are Air France-KLM SA (AFLYY - Free Report) , Delta Air Lines, Inc. (DAL - Free Report) and Deutsche Lufthansa AG (DLAKY - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Air France-KLM, Delta Air Lines and Deutsche Lufthansa have gained over 51%, 5% and 32%, respectively, in the last three months.
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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 >>
Spirit Airlines, Inc. (SAVE - Free Report) has lost 4.51% in a year, significantly underperforming its industry’s 32.85% gain in the period.
This downside was primarily due to the airline’s dispute with its pilots. Consequently, the carrier had to cancel multiple flights resulting in customer dissatisfaction. As a result of the disruption in services, the company had to incur heavy costs to the tune of $45 million, pertaining to passenger re-accommodation and other factors.
As a matter of concern, this pilot dispute even hurt Spirit Airlines’ second-quarter results. The carrier reported lower-than-expected revenues in the quarter. Also, cost per available seat miles, excluding fuel (CASM) climbed 10% in the second quarter. Adding further to its woes, the tiff is anticipated to be a drag on the company’s third-quarter results too. Plus, the decline in load factor (percentage of seats filled by customers) in July due to capacity overexpansion is a cause for worry.
The company has issued a disappointing guidance with respect to total revenue per available seat miles (TRASM: a key measure of unit revenue) for the third quarter due to pricing and competitive pressures. The metric is expected to decline in the band of 2-4% in the third quarter of 2017 on a year-over-year basis.
Considering such a gloomy scenario, we believe investors would do well to dump this Zacks Rank #5 (Strong Sell) stock from their portfolios at the moment.
Zacks Rank & Key Picks
Some better-ranked stocks in the airline space are Air France-KLM SA (AFLYY - Free Report) , Delta Air Lines, Inc. (DAL - Free Report) and Deutsche Lufthansa AG (DLAKY - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Air France-KLM, Delta Air Lines and Deutsche Lufthansa have gained over 51%, 5% and 32%, respectively, in the last three months.
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
Learn more >>
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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