Spirit Airlines Shares Plunge on Bankruptcy Talk

Spirit Airlines (NYSE: SAVE) is in talks with creditors to improve its liquidity amid reports of potential bankruptcy, the ultra-low-cost carrier said on Tuesday, sending its shares tumbling 53%.

The Florida-based airline confirmed “constructive discussions” with a supermajority of noteholders are advancing, while warning that a failed agreement could lead to equity cancellation. The company said it is exploring all strategic alternatives.

Spirit projects its third-quarter adjusted operating margin will decline 12% year-over-year. The carrier has reported losses in five of the last six quarters despite robust travel demand.

Cost-cutting measures include plans to furlough approximately 330 pilots beginning January 31 and the sale of 23 older Airbus aircraft for $519 million, expected to generate $225 million in liquidity next year.

The airline’s stock has plunged 91% this year, contrasting sharply with the S&P 500 passenger airlines index’s 52% gain. .


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

What Happens If Silver Finally Breaks $50? | Gary Thompson – Silver47

Recommended

Emerita Resources Expands El Cura Drill Program By 10,000 Metres As Deposit Remains Open For Expansion

ESGold Signs MOU For Tailings Project In Colombia With Grades Up To 42 g/t Gold, 280 g/t Silver

Related News

Frontier Out, JetBlue In: Spirit Reached US$3.8 Billion New Merger Deal

The bidding war for acquiring Spirit Airlines (NYSE: SAVE) is seemingly headed for its grand...

Friday, July 29, 2022, 03:16:00 PM

Can Frontier Save Merger With Spirit Airlines? JetBlue Ups Its Bid, Again

The acquisition tug-of-war intensifies to win the belle of the airline ball Spirit Airlines, Inc....

Tuesday, June 28, 2022, 09:30:52 AM

Airlines Halt Haiti Flights After Aircraft Hit by Gunfire

Airlines suspended flights to Haiti on Monday after gunfire struck two commercial aircraft, injuring a...

Tuesday, November 12, 2024, 02:49:00 PM

Frontier Airlines Ends 2021 With US$2.06 Billion In Revenue, Announces US$6.6 Billion Merger With Spirit Airlines

Frontier Airlines, Inc. (Nasdaq: ULCC) released today its fourth quarter and full-year 2021 financial results....

Monday, February 7, 2022, 09:29:00 AM

Spirit(ed) Away: Bankruptcy Speculation Shakes Spirit Airlines Stock

Spirit Airlines (NYSE: SAVE), a popular ultra-low-cost carrier, is reportedly exploring bankruptcy as an option...

Saturday, October 5, 2024, 07:56:00 AM