Spirit Airlines Boosts Guidance: A Great Sign for the Future
The U.S. leisure travel recovery shows no signs of slowing. On Sunday, passenger throughput at TSA checkpoints hit a new pandemic-era record of nearly 2.1 million travelers: down just 17% from the equivalent day in 2019. Considering that business travel demand remains very low and the summer peak travel season is just starting, that was an impressive number.
Sure enough, on Monday, Spirit Airlines (NYSE: SAVE) raised its second-quarter guidance. The improved outlook bodes well for the budget airline's results in the second half of 2021 (and beyond).
Spirit Airlines lost a ton of money in the first quarter, as travel demand remained quite weak in the first two months of 2021. The carrier recorded an adjusted pre-tax loss of $308 million and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of -$200 million. This translated to an awful adjusted EBITDA margin of -43.3%.
Source Fool.com
