Investing.com -- Shares in Spirit Airlines (NYSE:SAVE) were choppy in premarket U.S. trading on Monday after the budget carrier posted a quarterly adjusted net loss that was wider than analysts' estimates but revenues met projections.
Despite a recent surge in travel demand, the company has faced headwinds from excess capacity in some of its key markets, which has led it to heavily slash prices.
Spirit has also acknolwedged that it is battling increased competition in core markets like Florida, a trend that the firm said "remains challenging."
Compounding its issues was the collapse of a planned $3.8 billion merger with JetBlue Airways (NASDAQ:JBLU), a deal that would have created the fifth-biggest carrier in the U.S. and possibly have solidified Spirit following six straight quarters of losses. Chief Financial Officer Scott Haralson said that the business is now working on the initial phase of a plan to secure its operations as a standalone entity.
Chief Executive Ted Christie added that these initiatives include a cost-cutting push that will allow the firm to "compete effectively in today's marketplace."
Performance in the first quarter was also dented by adverse weather and air traffic control related delays along the Eastern seaboard of the U.S., Spirit said. Civil unrest in Haiti hit its returns during the three-month period as well.
On an adjusted basis, Spirit posted a net loss of $160.2 million, compared with Bloomberg consensus estimates for a loss of $158.4 million. Adjusted operating margin came in at -13.9% versus projections of -13.8%.
Operating revenue of $1.27 billion, however, was in line with expectations.