Spirit Airlines falls after lowering Q3 revenue guidance

Spirit Airlines (NYSE:) lowered its Q3 revenue guidance, sending its shares down by 4% in premarket Wednesday trade.

Spirit Air now expects Q3 sales to be in the range of $1.245 billion to $1.255B, down from the prior range of $1.30B-$1.32B.

The company sees an adjusted operating margin at -14.5% to -15.5%, down from the previous expectation of -5.5% to -7.5%. Analysts were expecting -7.2%. It also sees fuel costs per gallon at $3.06, up from the previous estimate of $2.80.

SAVE anticipates available seat miles to increase by 13.4%.

“During the last few weeks, the Company has seen heightened promotional activity with steep discounting for travel booked for the second half of the third quarter through the pre-Thanksgiving travel period. In addition, fuel prices have increased since the Company gave its guidance for the third quarter,” the company said in a filing.