Spirit Airlines Cuts Q3 Revenue View Below Market; Stock Down In Premarket

(RTTNews) - Spirit Airlines, Inc. (SAVE), an ultra-low cost airline, on Wednesday trimmed its adjusted margin and revenue forecast for its third quarter.

In pre-market activity on the NYSE, the shares were losing around 3.4 percent to trade at $16.69.

The company noted that there was heightened promotional activity during the last few weeks with steep discounting for travel booked for the second half of the third quarter through the pre-Thanksgiving travel period. In addition, fuel prices have increased since its previous outlook.

For the third quarter, the company now expects adjusted operating margin of negative 14.5 percent to 15.5 percent, compared to previous outlook of negative 5.5 percent to 7.5 percent.

Total revenues for the quarter is now expected to be $1.245 billion to $1.255 billion, compared to previous outlook of $1.30 billion to $1.32 billion.

On average, nine analysts polled by Thomson Reuters expect revenues of $1.32 billion for the third quarter. Analysts' estimates typically exclude special items.

Fuel cost per gallon is now expected to be $3.06, compared to previously expected $2.80.