Spirit Airlines (SAVE) February Traffic Up 21%, Stock Gains - Analyst Blog

Shares of low-cost carrier Spirit AirlinesSAVE have gained 2.3% ever since the company declared positive traffic numbers for the month of February. Air traffic, measured in revenue passenger miles (RPMs), was up 21.3% year over year at 1.2 billion. Capacity (available seat miles or ASMs) of this Miramar, FL-based discount airline increased 24% in the month to 1.45 billion.

However, another important metric, load factor (% of seats filled by passengers) declined 200 basis points to 84.2%. Furthermore, completion factor for the month stood at 97%.

In the first two months of 2014, Spirit Airlines generated RPMs of 2.6 billion (up 20.7% year over year) and ASMs of 3.1 billion (up 24.7%), leading to a load factor of 83.2% (down 260 bps). Apart from Spirit Airlines, low-cost carrier Southwest Airlines Co. LUV too reported encouraging traffic results for Feb 2015 recently.

The encouraging traffic data is a further boost for Spirit Airlines which has already been performing well riding on its discount model. The company performed strongly in the fourth quarter of 2014, reporting higher-than-expected earnings. Low oil prices aided results. The carrier is expected to retain its performance momentum in 2015 as well.

Currently, the company's all-Airbus fleet operates more than 325 daily flights to 57 destinations in the US, Latin America and the Caribbean. Spirit Airlines is constantly trying to expand its operations by launching multiple new flights.

Zacks Rank

Spirit Airlines currently carries a Zacks Rank #2 (Buy). Investors interested in the airline space may also consider JetBlue Airways JBLU and Allegiant Travel Company ALGT , both of which sport a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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