Spirit Airlines Inc. said first-quarter revenue was better than expected, leading to improved operating-margin guidance, but the company noted that fares remain low in its markets.

Spirit, known for pairing very low base fares with fees for things such as carry-on baggage and drinks, said non-ticket revenue was relatively stable, but faced "modest pressure on take rates for certain ancillary items."

The carrier increased its operating-margin guidance to about 21.5%, from a range of 19% to 20.5%.

Spirit said total revenue per available seat mile fell about 14%, which was better than expected as revenue-management strategies helped results.

In January, Spirit replaced Chief Executive Ben Baldanza , naming board member Robert Fornaro as its new president and CEO.

Last week, the company said March traffic increased 25.1% as load factor rose to 88.5% from 88.1% a year earlier.

Spirit has been hurt by aggressive fare cuts from legacy carriers. A sharp drop in fuel prices has made it easier for big airlines to cut prices in response to expansion by discounters.

On Monday, Spirit said its average ticket revenue per passenger segment declined sequentially in the first quarter.

In after-hours trading, Spirit shares rose 1.9% to $51.

Write to Josh Beckerman at josh.beckerman@wsj.com

(END) Dow Jones Newswires

April 18, 2016 21:05 ET (01:05 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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