=Spirit Airlines (SAVE) reported earnings on Wed 24 July 2019 (a/h)

Spirit Airlines beats by $0.05, reports revs in-line, guides for Q3 TRASM of down 1% to up 1% 

Reports Q2 (Jun) earnings of $1.69 per share, $0.05 better thanthe S&P Capital IQ Consensus of $1.64; revenues rose 18.9% year/year to $1.01 bln vs the $1.01 bln S&P Capital IQ Consensus.

Non-GAAP operating margin improved to 16.3% from 13.3% yr ago.

Total operating revenue per available seat mile (TRASM) increased 5.0% compared to the same period last year.

Reports cost per available seat mile (CASM), excluding operating special items and fuel (Adjusted CASM ex-fuel), of 5.41 cents, up 4.6% compared to the same period last year.

Guidance: For 3Q19, Spirit estimates its total revenue per available seat mile will be in the range of down 1% to up 1%. SAVE estimates its CASM ex-fuel for 3Q19 will be up 7.0-8.0% yr/yr. Compared to initial expectations at the beginning of the year of up 1% to 2%, 150 basis points are related to the previously disclosed additional costs in conjunction with the Ft. Lauderdale runway closure.

Additionally, 150 basis points of pressure is related to reduced ASM production primarily due to a lower completion factor assumption, 100 basis points are due to lower stage, and 200 basis points are primarily related to higher estimates for flight disruption costs. Spirit is assuming a lower completion factor for the remainder of the year in anticipation that the challenging weather conditions will continue.