Airlines, Discount Carrier | featured news

Discount carrier Spirit Airlines priced its initial public offering at $12 per share Wednesday, below the expected range. The company sold 15.6 million shares at that price, and has granted underwriters the option to purchase an additional 2.34 million shares to cover over allotments.

The most recent attempt by U.S. airlines to boost fares has been cut in half by pressure from discount carriers. Last week, the big network carriers including United, Continental, Delta and American raised many domestic fares by $20 a round trip. By Monday afternoon, the increase had been cut to $10.

Discount carrier posts 12.9% gain in fourth-quarter earnings. The discount carrier said net income totaled $131 million, or 18 cents per share, compared to $116 million, or16 cents per share, in the same quarter last year. Operating revenue rose 14.8%, to $3.1 billion.

Southwest Airlines reported another quarter of red ink, $16 million, extending a trend that until a year ago was unseen at the discount carrier since the early 1990s. Hedging losses again weighed on results.