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A Spirit Airlines jetliner on the tarmac at Fort Lauderdale-Hollywood International Airport. (Joe Cabaletta/South Florida Sun Sentinel/Tribune News Service via Getty Images)
Joe Cavaletta | South Florida Sun Sentinel | Getty Images
Spirit Airlines on Friday revised its fourth-quarter 2023 earnings forecast upward, sending its stock price soaring more than 20% after a rout earlier this week over a judge’s ruling blocking JetBlue Airways’ acquisition of the low-cost carrier.
Spirit said in a filing that it expects revenue to be about $1.3 billion, at the higher end of its initial expectations, thanks to strong year-end bookings. The company estimates the adjusted negative profit margin to be 12% to 13%, an improvement from its previous forecast of a maximum negative profit margin of 19% for the last three months of this year.
The airline also acknowledged savings in fuel and other expenses in the improved estimates.
Spirit stock had fallen 62% over the previous trading week, losing more than $1 billion in market capitalization, before Friday’s premarket spike in shares as the ruling cast doubt on the airline’s future. Some analysts said the company could be on track to file for bankruptcy protection.
Both airlines said they disagreed with the decision and were considering next steps, including an appeal.
Spirit confirmed Friday that it is considering options to refinance more than $1 billion in debt that matures in 2025. The company previously sold and leased back some of its aircraft. The company said in a filing that it had $1.3 billion in liquidity at the end of 2023.
The airline had been struggling even before the antitrust ruling, warning last year of challenges including high costs, weak travel demand and an engine problem at Pratt & Whitney that will ground dozens of Airbus planes this year.
Spirit said Friday that it expects compensation from Pratt & Whitney, a division of RTX, in connection with the engine problems.
“While discussions with Mr. Pratt have progressed significantly since October and no agreement has been reached to date, we believe the amount of compensation we receive will be a significant source of liquidity for the next several years,” Spirit said in a statement Friday. “There is,” he said. Securities notification.
Spirit plans to hold its quarterly conference call with analysts on February 8 to discuss its results and outlook.
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