Ultra low-cost carrier Spirit Airlines posted better-than-expected quarterly results recently, fuelled by strong demand for air travel despite ongoing economic concerns.Shares of Spirit rose over 7 per cent to USD 21 in aftermarket trade. US airlines have been trying to cash in on 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’s Chief Executive, Ted Christie. However, adverse weather, worker shortages and technical glitches have snarled operations over the past year.
Spirit earned USD 0.12 per share on an adjusted basis, above analyst estimates of USD 0.04 per share, according to Refinitiv data.
The Miramar, Florida-based airline’s total operating revenue in the quarter rose nearly 41 per cent to USD 1.39 billion, compared with analysts’ estimates of USD 1.38 billion.