Spirit Airlines faced a turbulent first quarter as it reported its 10th consecutive quarterly loss.
The airline said it anticipates weak second quarter revenue due to slow domestic demand recovery and aircraft grounding, especially affected by issues with RTX's Pratt & Whitney Geared Turbofan engines.
Spirit estimates about 25 grounded aircraft in 2024, hindering growth, particularly in core markets like Florida.
Spirit Airlines disclosed a first-quarter loss of $1.46 per share, aligning with expectations, alongside revenues totaling $1.27 billion.
While the first-quarter loss was in line with estimates, the bleak second quarter revenue forecast disappointed investors.
Shares of Spirit were down around 9.8% on Monday morning.
Despite cost-saving measures, including pilot furloughs and deferring aircraft deliveries, Spirit faces considerable challenges ahead, with uncertainties about a recovery timeline and financial stability looming large.
The airline's outlook for second-quarter revenue, ranging between $1.32 billion and $1.34 billion, fell significantly below Wall Street's consensus estimate of $1.46 billion.