Spirit Airlines estimates that it second quarter 2016 operating margin will be approximately 22 percent, in line with our previous guidance. Total revenue per available seat mile (TRASM) came in at the low end of the range contemplated in the airline’s initial guidance for the quarter (down 14.3 percent year over year). Despite seeing more fare discounting than what is typical for a peak summer travel period, there was a slight quarter-to-quarter sequential year-over-year improvement in domestic TRASM for the second quarter. As anticipated, there was a modest quarter-to-quarter sequential decline in non-ticket revenue per PFS, ending the quarter with $51.32 in non-ticket revenue per PFS. Adjusted cost per available seat mile excluding fuel (CASM ex-fuel) for the second quarter 2016 is estimated to have decreased approximately 8 percent year over year compared to our initial guidance of a decrease of approximately 5 percent. This better-than-expected unit cost performance is primarily driven by the timing of maintenance events.
Spirit reports Second Quarter 2016 guidance
