(Bloomberg) -- Spirit Airlines Inc. said second-quarter revenue will be lower than expected and that operating losses will be worse due to competitive pressure on baggage fees and other non-ticket charges.
The discount carrier sees revenue coming in at $1.28 billion for the quarter, below previous estimates for as much as $1.34 billion, it said in a regulatory filing Tuesday. Operating losses, excluding special items, will be as much as $173 million, compared with an earlier projection that topped out at a $145 million loss.
Spirit blamed its shortfall not on lower fares — something that has weighed on the entire industry this summer — but rather on a drop in revenue from add-ons it charges separately for such as assigned seats, printed boarding passes or an in-flight bottle of water. Non-ticket sales per passenger in the second quarter is now seen at $64, “several dollars lower than anticipated,” Spirit said.
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Shares of the airline fell 5% after the close of regular trading to $2.99 as of 5:14 p.m. in New York. The stock fell 81% this year as of the close on Tuesday.
While Spirit still expects “significant pressure” on leisure ticket prices to flow into the third quarter, it said estimated ticket revenue per flight segment in the April-June period was in-line with prior expectations. Flying capacity rose 1.7%, compared with a prior outlook for a 2% increase.
Spirit said it would report full results for the quarter in early August.
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