Spirit Airlines soared in morning trading Friday after the struggling cheap carrier reported a robust holiday travel season that increased fourth-quarter revenue.
They plan to generate $1.3 billion in revenue by reporting its last quarter 2023 numbers early next month. That is at the upper half of previous guidance and consistent with Wall Street projections.
Stock jumped more than 20% to $6.88 per share in morning trading.
Spirit Air Stock Bounces Back A Bit, Airline Says Holiday Travel Boosted Revenue
The airline’s stock fell more than half its value earlier this week after a federal judge in Boston rejected JetBlue’s $3.8 billion bid to acquire Spirit, claiming it violated antitrust law.
A sale to JetBlue provided a lifeline for the airline, which has $1.1 billion in debt maturing next year.
Spirit and JetBlue said they are reviewing the court’s judgement and that the merger remains in force while considering their future actions.
Some Wall Street experts warned last week that Spirit’s only plausible option is bankruptcy absent an acquisition.
Spirit Air Stock Bounces Back A Bit, Airline Says Holiday Travel Boosted Revenue
The company, situated in Miramar, Florida, last reported a full-year profit in 2019. It has lost about $1.6 billion since then.
In a regulatory filing two weeks ago, They stated that it had raised $419 million through 25-plane sale-and-leaseback agreements. The company stated that it has $1.3 billion in cash and cash equivalents and is exploring options to repay debt maturing in 2025.
Spirit Air Stock Bounces Back A Bit, Airline Says Holiday Travel Boosted Revenue
They are low-cost airline that operates in the United States, Latin America, and the Caribbean. It is known for its no-frills approach, offering affordable fares and optional add-ons for services like baggage and seat selection.
The company focuses on keeping costs low and passing those savings on to customers. While it may not offer the same amenities as some other airlines, Spirit Air provides a budget-friendly option for travelers looking to get to their destination without breaking the bank.
SOURCE – (AP)
