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Spirit Airline’s stock slides 3% after earnings fall short amid softer

Spirit Airlines Inc.’s stock SAVE, -7.14% fell 1.7% in premarket trade Thursday, after the low-cost airline’s second-quarter earnings fell short of estimates after a slump in peak summer travel

Spirit Airlines Inc.’s stock SAVE, -7.14% fell 1.7% in premarket trade Thursday, after the low-cost airline’s second-quarter earnings fell short of estimates after a slump in peak summer travel demand. Miramar, Fla.-based Spirit had a net loss of $2.349 million, or 2 cents a share, for the quarter, narrower than the loss of $53.4 million, or 48 cents a share, posted in the year-earlier period. Adjusted per-share earnings came to 29 cents, below the 39 cent FactSet consensus. Revenue rose 4.85 to $1.432 billion from $1.367 billion a year ago, but also missed the $1.473 billion FactSet consensus. Chief Executive Ted Christie said demand for peak summer travel was softer than expected, resulting in lower fare levels on the routes the airline services. “This summer we are comparing to a period of exceptionally strong domestic and near-field international demand in 2022, while at the same time seeing demand shift away from these regions towards long-haul international,” Christie said in a statement. “Difficult weather and challenging Air Traffic Control initiatives are also creating a significant headwind to unit revenue.” Those trends continued through July and are expected to continue into the fall, eh added. “However, once the international summer travel season ends and kids go back to school, we anticipate that demand will shift back towards domestic. This should mean a more normal pricing and demand environment for the peak holiday travel periods in the fourth quarter,” he said. The stock has fallen 12% in the year to date, while the S&P 500 SPX, -0.25% has gained 17.6%.

Sunrise posts a surprise profit, DXC issues guidance below expectations, and Wayfair easily beats estimates. Apple and Amazon are scheduled to report earnings after the closing bell Thursday.

Ciara Linnane is MarketWatch's investing- and corporate-news editor. She is based in New York.