Spirit Airlines (NYSE:SAVE) 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 $160 million and $173 million for the three months ended June 30, compared with a previous estimate for a loss of no more than $145 million. It expects sales of $1.28 billion, down from a forecast of at least $1.32 billion.
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.
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.
SAVE shares began Wednesday in the red 31 cents, or 9.8%, to $2.85.
