In a Tough Quarter, Spirit Airline's Low-Cost Advantage Shines Through
As expected, Spirit Airlines' (NASDAQ: SAVE) third quarter was hit hard by hurricane season. The airline canceled a total of 1,650 flights due to the storms, which cost the company an estimated $40 million in lost Q3 revenue. On top of the pilot work stoppage that took place in May, this is shaping up to be a very challenging year for Spirit. For full-year 2017, analysts are now expecting 13% revenue growth, along with an EPS decline of roughly 27%.
However, taking the longer view, the airline's future still looks bright. In fact, stripping out the severe effects of this year's hurricanes, Spirit posted what looks to me like a pretty decent quarter. As the low-cost operator in the markets it serves, Spirit continues to operate from a position of strength. But this year's disruptions turned out to be quite costly -- and it's going to take a while before earnings growth resumes.
Image source: Spirit Airlines.
Source: Fool.com
Spirit Airlines, Inc. Stock
The community sentiment towards Spirit Airlines, Inc. is currently rather negative with 17 Sell predictions and no Buy predictions.
A potential of -27.86%, resulting from comparing the current price of 2.77 € with the target price of 2 € for Spirit Airlines, Inc., shows the chance of incurring significant losses.
