Spirit Airlines expects to report weaker financial results in the fourth quarter, mainly due to typical industry seasonality and soaring fuel prices. Adding to the pressure, Spirit has reduced its capacity plan due to labor constraints. It now plans to increase capacity by approximately 11.2% relative to Q4 2019, down from its previous plan of 23% growth.
IMAGE SOURCE: SPIRIT AIRLINES.

The reduced capacity plan implies lower aircraft utilization, driving unit costs higher. Furthermore, half of the capacity reduction is centered on Spirit's Fort Lauderdale operations, due to staffing shortages there. That will hurt unit revenue, as Florida routes tend to perform well above average in the fall and winter.