Spirit Airlines shares fall on weak unit revenue forecast
(Reuters) - Shares of Spirit Airlines Inc (SAVE.O) fell as much as 17 percent after the company forecast a fall in unit revenue for the third quarter.
Spirit Airlines said on Thursday it expects total revenue per available seat mile (TRASM) to be down 2.5 to 4.5 percent in the quarter, partly hurt by Hurricane Isaac.
The company had posted a 28.4 percent jump in TRASM, or unit revenue, in the third quarter last year as it had benefited from federal excise tax holiday.
However, Raymond James, which downgraded the stock to "market perform" from "outperform", said the company is seeing weakness in some booking channels, causing unit revenue to track lower than its 3 percent growth expectation.
"While Hurricane Isaac may have impacted bookings in late-August and early-September, there is some additional softness in traffic," the brokerage said.
Dahlman Rose also cut the price target on the stock to $23 from $27.
Shares of the Miramar, Florida-based company were trading down 13 percent at $17.12 on Friday on Nasdaq.
(Reporting by Megha Mandavia in Bangalore; Editing by Sreejiraj Eluvangal)
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