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Spirit Airlines (SAVE - Free Report) now expects revenues for fourth-quarter 2023 to be $1.32 billion. The new guidance is at the high end of the airline’s previously guided range of $1.28-$1.32 billion. The bullish expectation is due to the fact that bookings for the peak travel period over Christmas and New Year were strong.
Apart from revenues, operating expenses for the final quarter of 2023 are expected to be better than forecast primarily owing to lower fuel costs driven by better-than-expected fuel efficiency, lower airport costs and other items. SAVE’s strong operational performance is highlighted by its completion factor of 99.7% during the holiday period. Adjusted operating margin is now expected to be between (12%) and (13%) (earlier expectation was between (15%) and (19%)).
Fuel gallons consumed for fourth-quarter 2023 are expected to be $153 million. Fuel price per gallon is anticipated to be $3.18. The effective tax rate is projected to be 22.6%.
Available seat miles are suggested to increase 14.8% from fourth-quarter 2022 actuals. Detailed results for fourth-quarter 2023 will be out on Feb 8. Available seat miles are anticipated to increase in the 1-2% band in first-quarter 2024 from first-quarter 2023 actuals.
The bullish fourth-quarter guidance apart, Spirit Airlines' management stated that it disagrees with the recent U.S. District Court’s verdict to block the $3.8-billion deal with JetBlue Airways (JBLU - Free Report) citing competition concerns.
SAVE believes that the combination with JBLU provides the best opportunity to increase competition and choice by bringing in low fares and great service. JBLU and SAVE have jointly filed a notice of appeal to the United States Court of Appeals for the First Circuit.
Copa Holdings is gaining from improved air-travel-demand scenario. We are encouraged by the company’s initiatives to modernize its fleet. CPA's focus on its cargo segment is also impressive.
For 2023, CPA’s earnings are expected to register an 84.75% increase from a year ago. CPA has outpaced the Zacks Consensus Estimate for earnings in each of the past four quarters. The average surprise is 16.81%.
American Airlines is witnessing improvements on an improved air-travel-demand scenario, particularly on the domestic front. The carrier's debt-reduction efforts are impressive as well. Management aims to reduce its debt by $15 billion by 2025 end.
The Zacks Consensus Estimate for 2024 earnings has been revised 4.19% upward over the past 60 days. AAL has surpassed the Zacks Consensus Estimate for earnings in each of the past four quarters. The average beat is 23.83%.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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Spirit (SAVE) Issues Bullish Q4 Guidance, Backs JBLU Deal
Spirit Airlines (SAVE - Free Report) now expects revenues for fourth-quarter 2023 to be $1.32 billion. The new guidance is at the high end of the airline’s previously guided range of $1.28-$1.32 billion. The bullish expectation is due to the fact that bookings for the peak travel period over Christmas and New Year were strong.
Apart from revenues, operating expenses for the final quarter of 2023 are expected to be better than forecast primarily owing to lower fuel costs driven by better-than-expected fuel efficiency, lower airport costs and other items. SAVE’s strong operational performance is highlighted by its completion factor of 99.7% during the holiday period. Adjusted operating margin is now expected to be between (12%) and (13%) (earlier expectation was between (15%) and (19%)).
Fuel gallons consumed for fourth-quarter 2023 are expected to be $153 million. Fuel price per gallon is anticipated to be $3.18. The effective tax rate is projected to be 22.6%.
Available seat miles are suggested to increase 14.8% from fourth-quarter 2022 actuals. Detailed results for fourth-quarter 2023 will be out on Feb 8. Available seat miles are anticipated to increase in the 1-2% band in first-quarter 2024 from first-quarter 2023 actuals.
The bullish fourth-quarter guidance apart, Spirit Airlines' management stated that it disagrees with the recent U.S. District Court’s verdict to block the $3.8-billion deal with JetBlue Airways (JBLU - Free Report) citing competition concerns.
SAVE believes that the combination with JBLU provides the best opportunity to increase competition and choice by bringing in low fares and great service. JBLU and SAVE have jointly filed a notice of appeal to the United States Court of Appeals for the First Circuit.
Zacks Rank & Key Picks
SAVE currently carries a Zacks Rank #3 (Hold).
Investors interested in the Zacks Airline industry may consider better-ranked stocks like Copa Holdings (CPA - Free Report) and American Airlines (AAL - Free Report) . CPA currently sports a Zacks Rank #1 (Strong Buy) and AAL carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Copa Holdings is gaining from improved air-travel-demand scenario. We are encouraged by the company’s initiatives to modernize its fleet. CPA's focus on its cargo segment is also impressive.
For 2023, CPA’s earnings are expected to register an 84.75% increase from a year ago. CPA has outpaced the Zacks Consensus Estimate for earnings in each of the past four quarters. The average surprise is 16.81%.
American Airlines is witnessing improvements on an improved air-travel-demand scenario, particularly on the domestic front. The carrier's debt-reduction efforts are impressive as well. Management aims to reduce its debt by $15 billion by 2025 end.
The Zacks Consensus Estimate for 2024 earnings has been revised 4.19% upward over the past 60 days. AAL has surpassed the Zacks Consensus Estimate for earnings in each of the past four quarters. The average beat is 23.83%.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.