- Citing continued impact in demand for air travel due to the COVID-19 pandemic, Spirit Airlines (SAVE +5.7%) sees significant pressure on ticket revenue per passenger flight segment and Non-ticket revenue per passenger flight segment for Q4 to be down modestly.
- Load factor for Q4 is expected to average about 70 percent and average daily cash burn1 for the quarter to be ~$2M, partly due to credit vouchers versus refunds being issued for the majority of passenger cancellations, mitigating much of the impact on cash burn from lower revenue expectations.
- Fuel cost is currently expected to average $1.31 per gallon vs, prior estimate of $1.23, the company now expects Q4 total operating expenses, excluding special items to be in the range of $660M-$670M vs. vs prior guidance $675M-685M
- Q4 Adjusted EBITDA margin rate estimated to be in the range of -15% to -20% vs. prior guidance of -9% to -14%.
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