Spirit Airlines, Inc. (SAVE) has lost over 16% of its stock value in 2019 alone. The reason for this is most likely high cost of labor. To compare the drop in price, the industry has had a gain of 5.6% in the same time period.
Spirit has been trying to figure out how to reduce the high labor costs for quite some time, but has not managed to do so. The Q1 2019 brought Spirit a 31.5% increase in expenses on salaries, wages and benefits. If that is not enough, Spirit also has to deal with the recent increase in fuel prices. Fuel expenses play a major role of airline operating expenses.
With all these negative news, the Zacks Consensus Estimate revised the forecast for Spirit down by 19.4% in the last 60 days.
At the moment, Spirit sports a Zacks Rank #3 (Hold).