A Spirit Airlines jetliner on the tarmac at Fort Lauderdale-Hollywood International Airport. (Joe Cavaletta/South Florida Sun Sentinel/Tribune News Service via Getty Images)
Joe Cavaletta | South Florida Sun Sentinel | Getty Images
spirit airlines on Friday raised its earnings forecast for the fourth quarter of 2023 and said it was considering refinancing its debt, sending its shares soaring more than 17%. A rout earlier this week was halted following a judge’s ruling on Tuesday. jet blue airlines From purchasing low-cost airlines.
spirit stated in the submitted documents Thanks to strong year-end bookings, the company said it expects sales to be about $1.3 billion, at the higher end of its initial expectations. The adjusted negative profit margin is now estimated to be 12% to 13%, an improvement from the previous forecast of a negative profit margin of up to 19% for the last three months of the year.
The airline also acknowledged that lower fuel and other expenses also contributed to the improved estimates.
Friday’s gains weren’t enough to erase Spirit stock’s losses this week. By Friday’s close, the stock had fallen 55%, wiping out more than $873 million in market capitalization, as the ruling cast doubt on the airline’s future, which was already on shaky footing. Some analysts believe the company may be on track to file for bankruptcy protection, if not completely liquidated.
Both airlines said they disagreed with the decision and were considering next steps, including an appeal.
Spirit said Friday 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 company had been struggling even before the antitrust ruling, and last year warned of challenges including high costs, weak travel demand, and weak travel demand. pratt & whitney Dozens of Airbus planes will be grounded this year due to engine problems.
Spirit said Friday that it expects compensation from a division of Pratt & Whitney. RTXrelated to that engine problem.
“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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