We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Spirit Airlines' (SAVE) Load Factor Forecast Upbeat for Q2
Read MoreHide Full Article
With air-travel demand improving (particularly for leisure) owing to increased rate of vaccination, management at Spirit Airlines (SAVE - Free Report) provided a bullish forecast for the June-quarter load factor (% of seats filled by passengers).
Driven by this upbeat scenario in both its international and domestic markets for leisure air-travel, this Miramar, FL-based ultra low-cost carrier expects load factor for the second-quarter 2021 to be 84%, in line with the second-quarter 2019 actuals. Moreover, the June-quarter expectation is much higher than 72.1% reported in the March quarter.
Backed by an uptick in the revenue scenario, the carrier, currently carrying a Zacks Rank #3 (Hold), has witnessed an improvement in operating yields over the past three months. As a result, Spirit Airlines now expects adjusted EBITDA margin for the June quarter to be positive, albeit modestly (earlier expectation was from -5% to 0%).
The scenario with respect to capacity (measured in available seat miles) is also brighter. The metric is now anticipated to decline 5.2% in second-quarter 2021 from the second-quarter 2019 reported levels. Earlier, the company had expected second-quarter 2021 capacity to decline 5.5% from the second-quarter 2019 finals. Capacity for the full year is anticipated to inch up 2% from the figure reported in 2019.
Fuel price per gallon is now projected to be $1.96 per gallon for second-quarter 2021 compared with $1.95 expected on Apr 21, 2021. Moreover, adjusted operating expenses for the second quarter of 2021 are now expected at the better end of the past $885-$895 million guided range.
Notably, Spirit Airlines is not the only carrier to have given an improved guidance for the June quarter, led by a recovery in the air-travel demand scenario. Carriers like JetBlue Airways (JBLU - Free Report) , Hawaiian Holdings (HA - Free Report) and Southwest Airlines (LUV - Free Report) too had issued bullish views for the said quarter.
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.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Image: Shutterstock
Spirit Airlines' (SAVE) Load Factor Forecast Upbeat for Q2
With air-travel demand improving (particularly for leisure) owing to increased rate of vaccination, management at Spirit Airlines (SAVE - Free Report) provided a bullish forecast for the June-quarter load factor (% of seats filled by passengers).
Driven by this upbeat scenario in both its international and domestic markets for leisure air-travel, this Miramar, FL-based ultra low-cost carrier expects load factor for the second-quarter 2021 to be 84%, in line with the second-quarter 2019 actuals. Moreover, the June-quarter expectation is much higher than 72.1% reported in the March quarter.
Backed by an uptick in the revenue scenario, the carrier, currently carrying a Zacks Rank #3 (Hold), has witnessed an improvement in operating yields over the past three months. As a result, Spirit Airlines now expects adjusted EBITDA margin for the June quarter to be positive, albeit modestly (earlier expectation was from -5% to 0%).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The scenario with respect to capacity (measured in available seat miles) is also brighter. The metric is now anticipated to decline 5.2% in second-quarter 2021 from the second-quarter 2019 reported levels. Earlier, the company had expected second-quarter 2021 capacity to decline 5.5% from the second-quarter 2019 finals. Capacity for the full year is anticipated to inch up 2% from the figure reported in 2019.
Fuel price per gallon is now projected to be $1.96 per gallon for second-quarter 2021 compared with $1.95 expected on Apr 21, 2021. Moreover, adjusted operating expenses for the second quarter of 2021 are now expected at the better end of the past $885-$895 million guided range.
Notably, Spirit Airlines is not the only carrier to have given an improved guidance for the June quarter, led by a recovery in the air-travel demand scenario. Carriers like JetBlue Airways (JBLU - Free Report) , Hawaiian Holdings (HA - Free Report) and Southwest Airlines (LUV - Free Report) too had issued bullish views for the said quarter.
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.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>