Spirit Airlines has cut its revenue and margin forecast for the third quarter, as a resurgence in COVID-19 cases drags booking trends and staff shortages force the airline to operate fewer flights.
Revenue Hit Forecast
The company forecast a hit of approximately $80 million to $100 million to revenue, after adverse weather and airport staffing shortages forced it to cancel 2,826 flights between July 30 and August 9.
Workforce Shortages, Flight Cancellations And Delays
After laying off or furloughing staff during the height of the COVID-19 pandemic last year, several US airlines are now reporting workforce shortages, flight cancellations and delays despite receiving billions in government bailouts.
Higher Costs
Spirit also flagged higher costs, driven by re-accommodation expenses for guests whose travel plans were impacted.
EBITDA Margin Expectation
The company now expects an adjusted loss before interest, taxes, depreciation and amortisation (EBITDA) margin of 8% to 1%, compared with its previous forecast for a profit margin of 10% to 15%.
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