Spirit Airlines Soars on Updated Guidance

By Kim Khan

Investing.com – Spirit Airlines (NYSE:SAVE) stock gained some serious altitude Thursday as investors cheered its fourth-quarter update.

Shares rose 7.3% in afternoon trading.

The airline was buoyed by a combination of improved revenue outlook and lower costs.

The company said after the bell Wednesday that its expects fourth-quarter total revenue per available seat mile (TRASM) to fall 3.6% from the year-ago period, versus prior guidance of a decline of 4.5% to 6.5%. Fourth-quarter fuel cost per gallon fell 7.1% from the same quarter a year ago.

Buckingham Research bumped up its price target on the stock to $53 from $50 per share.

The shop upgraded the stock to buy from neutral at the beginning of December, citing increased comfort on new ancillary revenue streams, a new loyalty program and possible deal talk.

The stock is down nearly 30% over the past year.