Spirit Airlines investor update, third quarter 2017
This investor update provides Spirit's third quarter 2017 guidance. All data is based on preliminary estimates.
Total revenue per available seat mile for the third quarter 2017 is estimated to be down approximately 6.5 percent year over year. This is better than our previous guidance range of down 7.0 to 8.5 percent given in early September, due to improving ticket and non-ticket yields and better-than-expected load factor.
During the third quarter 2017, Spirit canceled over 1,650 flights related to Hurricanes Harvey, Irma, and Maria. The Company estimates the unusual meteorological activity, together with the overhang from the pilot work action earlier in the year, negatively impacted third quarter revenue by approximately $40 million and operating margin by approximately 450 basis points.
Adjusted cost per available seat mile ex-fuel for the third quarter 2017 is expected to be flat to down 1 percent year over year compared to our previous guide of down 2 to 3 percent, primarily due to fewer available seat miles and additional costs related to the preparation for, and recovery from, Hurricane Irma.