What Is Going On With These Four Stocks On The Move?

Spirit Airlines Incorporated (NASDAQ:SAVE) is down by over 13% after warning that its fourth quarter revenue will decline more than expected.  From the press release:

Prices in the markets we serve are low, and we don’t expect that to change in the foreseeable future. Despite third quarter revenue in line with our expectations, we now expect the year-over-year unit revenue decline in the fourth quarter will be greater than the year-over-year unit revenue decline we experienced in the third quarter. However, our full year operating margin guidance range of 21.5 to 23.0 percent remains intact.

The regional airline’s fourth quarter revenue will come in lower than expected because American Airlines Group Inc (NASDAQ:AAL) is cutting prices on some routes to drive budget airlines out. Analysts don’t think American Airlines Group can win, however, as Spirit Airlines has substantially lower costs. Judging by the price action, the market isn’t so sure. American Airlines currently has a substantial amount of cash flow to spend because of low crude prices.

Disclosure: None