Spirit Airlines Has Trouble Ahead as Airfares Decline and Competition Increases

Spirit Airlines is having trouble raising fares as other carriers participate in a race to the bottom on pricing, according to executives during the airline's second quarter earnings call. Operating revenue increased 20.1 percent year-over-year to $701.7 million while net income rose 6.9 percent to $78.1 million for the June quarter. Flight volume (9.3 percent) and operating yields (7.1 percent). Despite posting solid results for the quarter, the airline has cautioned that it faces headwinds for the rest of the year due to a variety of factors. Spirit's stock dropped about 15 percent after the market opened Thursday morning following the release of its earnings report. Fares