Spirit Airlines sees Q3 revenue down $61M vs. last year on lower yields

Spirit Airlines (SAVE) estimated last night that its Q3 operating margin and adjusted operating margin will each be approximately 12 percentage points lower than the operating margin and adjusted operating margin reported last year due to lower total operating revenues and higher total operating expenses. Total operating revenues are estimated to have decreased approximately $61M compared to last year, primarily due to lower average yields, including the negative impact from the company no longer charging for change and cancellation fees. Total operating expenses are estimated to have increased approximately $46M and adjusted operating expenses are estimated to have increased approximately $52M compared to Q3 of 2023. “Total operating expenses and adjusted operating expenses are estimated to be higher year over year primarily due to an increase in aircraft rent expense, other operating expense, salaries, wages and benefits, and landing fees and other rents expense. These increases were partially offset by a decrease in aircraft fuel expense,” Spirit said.