By Kim Khan
Investing.com – Spirit Airlines (NYSE:) stock gained some serious altitude Thursday as investors cheered its fourth-quarter update.
Shares rose 7.3% in afternoon trading.
The airline was buoyed by a combination of improved revenue outlook and lower costs.
The company said after the bell Wednesday that its expects fourth-quarter total revenue per available seat mile (TRASM) to fall 3.6% from the year-ago period, versus prior guidance of a decline of 4.5% to 6.5%. Fourth-quarter fuel cost per gallon fell 7.1% from the same quarter a year ago.
Buckingham Research bumped up its price target on the stock to $53 from $50 per share.
The shop upgraded the stock to buy from neutral at the beginning of December, citing increased comfort on new ancillary revenue streams, a new loyalty program and possible deal talk.
The stock is down nearly 30% over the past year.
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