Spirit Airlines Slashes Guidance After Operational Meltdown
Just a few weeks ago, Spirit Airlines' (NYSE: SAVE) recovery seemed to be accelerating. The budget airline posted a much smaller second-quarter loss than analysts had expected. It returned to profitability in June, and management projected further improvement in the third quarter.
Unfortunately, Spirit suffered a massive operational meltdown beginning a few weeks ago. The fallout has forced the company to dramatically cut its third-quarter guidance.
Over the past few months, Spirit Airlines has steadily ramped up its flight schedule beyond pre-pandemic levels. As of late July, the carrier expected to increase third-quarter capacity by 10.6% compared to 2019, with further acceleration in its growth rate planned for the fourth quarter.
Source Fool.com
