2023-03-14 07:22:21 ET
Spirit Airlines ( NYSE: SAVE ) updated Q1 2023 guidance to account for higher fuel costs on Tuesday.
Per an SEC filing released early on Tuesday, the Florida-based airline expects operating expenses to range from $1.45B to $1.47B, $60M to $70M above prior guidance.
“The primary driver of the increase is higher-than-expected fuel costs. In addition, one-time costs associated with the implementation of its new pilot contract are expected to be higher than initially estimated,” the filing explained.
Additionally, Q1 capacity is expected to be about 0.5% lower than previous forecasts due to “an increase in the number of unscheduled engine removals during the quarter” that reduced the carrier’s ability to operate flights.
“Pratt & Whitney has indicated supply chain issues are beginning to improve and we should see less impact from unscheduled events as we move throughout the year. As such, we expect to see a steady increase in fleet utilization, reaching normalized utilization levels by the end of the year,” CEO Ted Christie commented. “Demand remains strong and, despite higher fuel prices, we are confident we will be profitable in the second, third, and fourth quarters of 2023 and profitable for the full year 2023.”
Shares of Spirit ( SAVE ) slipped 0.95% in premarket trading on Tuesday.
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Spirit Airlines higher expenses, lower capacity into Q1