Spirit Airlines beats estimates on strong travel demand

February 6 (Reuters) – Ultra Low Cost Airline Spirit Airlines Inc SAVE.N released better-than-expected quarterly results on Monday, fueled by strong demand for air travel despite lingering economic concerns.

Shares of Spirit rose more than 7% to $21 in the secondary market.

US airlines have tried to take advantage of strong demand for air travel, undeterred by rising interest rates and a looming recession as pandemic restrictions ease.

“Leisure demand has remained strong,” said Spirit chief executive Ted Christie.

However, adverse weather conditions, labor shortages and technical issues have hampered operations over the past year.

Spirit earned $0.12 per share on an adjusted basis, above analyst estimates of $0.04 per share, according to Refinitiv data.

The Miramar, Fla.-based airline’s total operating revenue in the quarter rose nearly 41% to $1.39 billion, from an estimated $1.38 billion. analysts.

(Reporting by Nathan Gomes in Bengaluru; Editing by Krishna Chandra Eluri)

((Nathan.Gomes@thomsonreuters.com;))

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