Fort Lauderdale, Florida-based ultra-LCC Spirit Airlines said it will report better-than-expected revenue for the 2018 second quarter, and has adjusted its 2Q total RASM guidance to reflect a 6.8% year-over-year (YOY) drop—at the lower end of Spirit’s previous 2Q guidance issued in April.

Spirit said total 2Q revenue “came in more than $10 million higher than the mid-point of our implied guidance,” which Spirit had said earlier would be down 6.5%-7.5%.

Spirit’s 2018 second quarter earnings will be released July 26.

In addition to improved revenues, Spirit said it achieved a better-than-expected completion factor for the quarter, driving slightly higher capacity than projected earlier; the company now projects CASM growth of 30.5% YOY for the quarter, up from its earlier 29% projection.

Meanwhile, Sprit’s expected 2Q costs excluding fuel are projected to be down about 11% YOY, better than the earlier CASM ex-fuel guidance for a 7.5%-8.5% YOY drop. Spirit said the better expense performance is related to a shift in expenses from the second quarter to the fourth quarter of 2018 “due to timing, with the remainder attributable to better operational performance, including higher completion factor.”

Since the end of the first quarter, Spirit has broadened its network with 41 new route announcements, 13 of which launched in April and May; the remainder are set to launch between September and December 2018. In October, Spirit will commence a significant international route expansion into the Caribbean, Central America, and South America from Orlando International Airport (MCO), with 11 new routes. Spirit will also launch two new routes to El Salvador and Guatemala from Houston’s George Bush Intercontinental Airport (IAH) in September.

Mark Nensel