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Spirit Airlines (SAVE) Q2 Loss Wider Than Expected, Sales Lag
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Spirit Airways’ (SAVE - Free Report) second-quarter 2024 loss of $1.44 per share missed the Zacks Consensus Estimate of a loss of $1.30 per share. In the year-ago quarter, the company reported earnings of 29 cents per share.
Operating revenues of $1.28 billion missed the Zacks Consensus Estimate of $1.3 billion. The top line decreased by 10.6% on a year-over-year basis, primarily due to a decline in the average yield of 12.3%.
Passenger revenues, accounting for 98% of the top line, decreased 11.1% to $1.25 billion due to a 22.2% drop in fare revenue per passenger flight and a 9.6% decrease in non-ticket revenue per passenger flight year over year. The actual figure was less than our estimate of $1.3 billion. Other revenues increased 21% to $27.1 million in the second quarter of 2024.
The operating loss was $1.5 billion. Meanwhile, total operating expenses increased 1.5% year over year, primarily due to an increase in aircraft rent, aircraft fuel, salaries, wages and benefits, landing fees and other rents.
Expenses on maintenance, materials and repairs fell marginally by 7.7%, and other cost items declined 4% year over year.
Load factor (% of seats filled by passengers) improved 0.3 points year over year to 83.2%. Total operating revenue per available seat miles declined 12.1%. The average fuel cost per gallon increased 6% year over year to $2.78.
Spirit Airlines, Inc. Price, Consensus and EPS Surprise
Spirit Airlines exited the second quarter of 2024 with cash and cash equivalents of $724.8 million compared with $865.2 million in the same time period in 2023. Long-term debt increased to $3.12 billion at the June-end quarter from $3.05 billion at 2023-end.
Currently, Spirit Airlines carries a Zacks Rank #4 (Sell).
For full-year 2024, the company expects available seat miles to be flat to down in the low single digits. For the third quarter of 2024, the same is expected to fall by 0.3% year over year.
The company estimates its total revenues for the third quarter to come between $1.155 billion and $1.175 billion. The Zacks Consensus Estimate for third-quarter revenues is pegged at $1.27 billion.
The adjusted operating loss for the third quarter is expected in the range of $305-335 million.
The third-quarter adjusted operating margin is estimated to fall between negative 26% and negative 29%. The adjusted operating margin for AOG credits for the third quarter of 2024 is estimated to come between negative 27.5 percent to negative 24.5 percent.
The average fuel cost per gallon is expected to be $2.65 in the September quarter.
Q2 Performances of Other Transportation Companies
Delta Air Lines’ (DAL - Free Report) second-quarter 2024 earnings (excluding 35 cents from non-recurring items) of $2.36 per share missed the Zacks Consensus Estimate of $2.37 and decreased 12% year over year.
Revenues of $16.7billion surpassed the Zacks Consensus Estimate of $16.3 billion and increased 7% on a year-over-year basis. Passenger revenues, accounting for 83% of the total revenues, improved 5% year over year.
United Airlines (UAL - Free Report) reported second-quarter 2024 earnings (excluding 18 cents from non-recurring items) of $4.14 per share, which surpassed the Zacks Consensus Estimate of $3.97 per share. However, the bottom line decreased 17.69% year over year.
Operating revenues of $15 billion missed the Zacks Consensus Estimate of $15.13 billion. However, the top line increased 5.7% year over year due to upbeat air travel demand. Cargo revenues rose by 14.4% year over year to $414 million. Revenues from other sources jumped 9.6% year over year to $892 million.
J.B. Hunt Transport Services’ (JBHT - Free Report) second-quarter 2024 earnings per share of $1.32 missed the Zacks Consensus Estimate of $1.51 and declined 27.1% year over year.
Total operating revenues of $2.93 billion lagged the Zacks Consensus Estimate of $3.04 billion and fell 6.5% year over year. Total operating revenues, excluding fuel surcharge revenues, decreased approximately 6% year over year.
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Spirit Airlines (SAVE) Q2 Loss Wider Than Expected, Sales Lag
Spirit Airways’ (SAVE - Free Report) second-quarter 2024 loss of $1.44 per share missed the Zacks Consensus Estimate of a loss of $1.30 per share. In the year-ago quarter, the company reported earnings of 29 cents per share.
Operating revenues of $1.28 billion missed the Zacks Consensus Estimate of $1.3 billion. The top line decreased by 10.6% on a year-over-year basis, primarily due to a decline in the average yield of 12.3%.
Passenger revenues, accounting for 98% of the top line, decreased 11.1% to $1.25 billion due to a 22.2% drop in fare revenue per passenger flight and a 9.6% decrease in non-ticket revenue per passenger flight year over year. The actual figure was less than our estimate of $1.3 billion. Other revenues increased 21% to $27.1 million in the second quarter of 2024.
The operating loss was $1.5 billion. Meanwhile, total operating expenses increased 1.5% year over year, primarily due to an increase in aircraft rent, aircraft fuel, salaries, wages and benefits, landing fees and other rents.
Expenses on maintenance, materials and repairs fell marginally by 7.7%, and other cost items declined 4% year over year.
Load factor (% of seats filled by passengers) improved 0.3 points year over year to 83.2%. Total operating revenue per available seat miles declined 12.1%. The average fuel cost per gallon increased 6% year over year to $2.78.
Spirit Airlines, Inc. Price, Consensus and EPS Surprise
Spirit Airlines, Inc. price-consensus-eps-surprise-chart | Spirit Airlines, Inc. Quote
Liquidity
Spirit Airlines exited the second quarter of 2024 with cash and cash equivalents of $724.8 million compared with $865.2 million in the same time period in 2023. Long-term debt increased to $3.12 billion at the June-end quarter from $3.05 billion at 2023-end.
Currently, Spirit Airlines carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Outlook
For full-year 2024, the company expects available seat miles to be flat to down in the low single digits. For the third quarter of 2024, the same is expected to fall by 0.3% year over year.
The company estimates its total revenues for the third quarter to come between $1.155 billion and $1.175 billion. The Zacks Consensus Estimate for third-quarter revenues is pegged at $1.27 billion.
The adjusted operating loss for the third quarter is expected in the range of $305-335 million.
The third-quarter adjusted operating margin is estimated to fall between negative 26% and negative 29%. The adjusted operating margin for AOG credits for the third quarter of 2024 is estimated to come between negative 27.5 percent to negative 24.5 percent.
The average fuel cost per gallon is expected to be $2.65 in the September quarter.
Q2 Performances of Other Transportation Companies
Delta Air Lines’ (DAL - Free Report) second-quarter 2024 earnings (excluding 35 cents from non-recurring items) of $2.36 per share missed the Zacks Consensus Estimate of $2.37 and decreased 12% year over year.
Revenues of $16.7billion surpassed the Zacks Consensus Estimate of $16.3 billion and increased 7% on a year-over-year basis. Passenger revenues, accounting for 83% of the total revenues, improved 5% year over year.
United Airlines (UAL - Free Report) reported second-quarter 2024 earnings (excluding 18 cents from non-recurring items) of $4.14 per share, which surpassed the Zacks Consensus Estimate of $3.97 per share. However, the bottom line decreased 17.69% year over year.
Operating revenues of $15 billion missed the Zacks Consensus Estimate of $15.13 billion. However, the top line increased 5.7% year over year due to upbeat air travel demand. Cargo revenues rose by 14.4% year over year to $414 million. Revenues from other sources jumped 9.6% year over year to $892 million.
J.B. Hunt Transport Services’ (JBHT - Free Report) second-quarter 2024 earnings per share of $1.32 missed the Zacks Consensus Estimate of $1.51 and declined 27.1% year over year.
Total operating revenues of $2.93 billion lagged the Zacks Consensus Estimate of $3.04 billion and fell 6.5% year over year. Total operating revenues, excluding fuel surcharge revenues, decreased approximately 6% year over year.