Spirit Airlines’ revenue better than expected
Spirit Airlines said Q1 revenue was better than expected, leading to improved operating-margin guidance, but the company noted that fares remain low in its markets. Spirit, known for pairing very low base fares with fees for things such as carry-on baggage and drinks, said non-ticket revenue was relatively stable, but faced “modest pressure on take rates for certain ancillary items.” The carrier increased its operating-margin guidance to about 21.5%, from a range of 19% to 20.5%. Spirit said total revenue per available seat mile fell about 14%, which was better than expected as revenue-management strategies helped results. In January, Spirit replaced CE Ben Baldanza, naming board member Robert Fornaro as its new president and CE. Last week, the company said March traffic increased 25.1% as load factor rose to 88.5% from 88.1% a year earlier. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-04-19/unaligned/spirit-airlines2019-revenue-better-than-expected
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Spirit Airlines’ revenue better than expected
Spirit Airlines said Q1 revenue was better than expected, leading to improved operating-margin guidance, but the company noted that fares remain low in its markets. Spirit, known for pairing very low base fares with fees for things such as carry-on baggage and drinks, said non-ticket revenue was relatively stable, but faced “modest pressure on take rates for certain ancillary items.” The carrier increased its operating-margin guidance to about 21.5%, from a range of 19% to 20.5%. Spirit said total revenue per available seat mile fell about 14%, which was better than expected as revenue-management strategies helped results. In January, Spirit replaced CE Ben Baldanza, naming board member Robert Fornaro as its new president and CE. Last week, the company said March traffic increased 25.1% as load factor rose to 88.5% from 88.1% a year earlier. <br/>
