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Spirit Airlines (SAVE) Beats on Q1 Earnings

Spirit Airlines, Inc. SAVE is a low-cost passenger carrier based in Fort Lauderdale providing travel opportunity principally to and from South Florida, the Caribbean and Latin America. Spirit Airlines Inc. is based in Miramar, FL.

The carrier is benefiting from plunging oil prices. Moreover, it is constantly making efforts to expand by adding new flights. Spirit Airlines has an encouraging track record having delivered positive earnings surprises in three of the last four quarters, with an average beat of 2.88%.

Zacks Rank: Currently, Spirit Airlines has a Zacks Rank #3 (Hold) but that could change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: Spirit Airlines’ first quarter 2016 earnings (on an adjusted basis) came in at $1.03 per share, beating the Zacks Consensus Estimate of $0.97. Earnings improved 5.2% on a year-over-year basis. Results were once again aided by weak fuel costs.

Revenue: Spirit Airlines reported operating revenues of $538.1 million beating the Zacks Consensus Estimate of $532 million. An increase in flight volume led to quarterly revenues climbing 9.1% on a year over year basis.

Key Stats to Note: In the reported quarter, operating revenue per available seat mile fell 13.8% year over year while load factor (% of seats filled by passengers) also dropped to 84.7% from 84.9% in the year-ago quarter. Load factor declined as traffic growth (26.2%) was outpaced by capacity expansion (26.5%) during the first quarter of 2016. Average economic fuel price per gallon declined 37.4% to $1.22.

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SPIRIT AIRLINES (SAVE): Free Stock Analysis Report
 
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