Spirit Airlines said Tuesday it would post a wider-than-expected loss for the last quarter because of revenue that came in short of its expectations. Spirit expects to report an adjusted loss of between $160m and $173m for the three months ended June 30, compared with a previous estimate for a loss of no more than $145m. It expects sales of $1.28b, down from a forecast of at least $1.32b. Spirit said non-ticket revenue, which accounts for the myriad fees long associated with its rock-bottom fares, came in “several dollars lower than anticipated” per passenger. Shares of the budget airline were down about 6% in extended trading after the airline released its investor update in a securities filing. The airline, along with rival Frontier Airlines, has recently revamped how it sells tickets by offering bundles that include things like seat assignments and carry-on bags that it used to sell a la carte. That brings its business practice more in line with larger competitors. “As the Company progresses on its transformation strategy, it anticipates that over time it will be able to drive improvement in total revenue per passenger segment,” Spirit said. The company is facing several challenges, such as oversupplied U.S. domestic market, an engine recall from supplier Pratt & Whitney that has grounded dozens of aircraft and the fallout of a federal judge’s ruling to block a planned acquisition by JetBlue Airways earlier this year.<br/>
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Virgin Atlantic will drop its Shanghai service this winter after 25 years as it further cuts its Asia-Pacific network amid the longer flying times necessitated by not being able to overfly Russia. The UK carrier had already last year opted not to restore its long-standing Hong Kong route, which it first flew in 1994, following the pandemic due to operational complexities stemming from the closure of Russian airspace following the invasion of Ukraine. Virgin will now end its London Heathrow-Shanghai service from 26 October. “Significant challenges and complexities on this route have contributed to the commercial decision to suspend flying to Shanghai,” says an airline spokesperson. ”We’re sorry for the disappointment caused to our loyal customers and anyone booked to travel from 26 October 2024 will be offered a refund.” Virgin’s Asia-Pacific network still includes Delhi and Mumbai in India and it added flights to the Maldives last year.<br/>
Saudia Airlines is confident that recently ordered Airbus jets will be delivered on schedule despite recent production delays, a senior airline executive said on Tuesday. State-owned parent Saudi Group ordered 105 narrow-body Airbus planes in May to be split between Saudia Airlines and its low-cost sister carrier flydeal. Saudia is due to receive the first aircraft in 2026, with deliveries stretching until 2031, said Saleh Eid, vice-president of fleet management and agreements at Saudia Airlines. "We are very comfortable with these delivery times," he told Reuters, noting that the airline was still taking delivery of Airbus planes under a previous order. We believe that the delivery dates we have got are safe," he said at an event to mark the recent plane order at an Airbus factory in Hamburg. Airline industry executives have said in recent months they are being notified of further delays amid disruption to supply chains. A decision by Airbus to slow its production ramp-up and cut delivery goals has trimmed expectations for 2024 and beyond.<br/>