Spirit Airlines Skyrockets On Cash Boost; Rivals Fall


Spirit Airlines (SAVE) drained a credit facility to shore up cash, likely delaying a bankruptcy filing. Spirit Airlines stock soared late Friday, while JetBlue Airways (JBLU) and Frontier Airlines (ULCC) fell solidly.

In an SEC filing late Friday, the ultra-low cost carrier said it’s borrowed all $300 million in a revolving credit facility due September 2026. Spirit Air now expects to end the year with more than $1 billion in liquidity.





X



NOW PLAYING
Tesla Earnings Are On The Horizon. These Are The Two Growth Drivers To Watch.



Spirit In The Sky, For A While

The cash infusion likely means Spirit Airlines can avoid a bankruptcy filing in the near term. That means no let up in airline competition, especially in the deep discount space.

Spirit Airlines stock shot up 31% late Friday. SAVE stock has plunged 91% in 2024.

JetBlue stock declined 6.3% while Frontier Airlines sank 3.9%.

In early 2022, Frontier Air reached a deal to buy rival Spirit, but JetBlue later trumped the offer. But in January 2024, a federal judge blocked the JetBlue-Spirit Air deal, siding with government regulators who feared the deal would reduce competition. Spirit Air, which hasn’t turned an annual profit since 2019, has been in danger of going under.

Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.

YOU MIGHT ALSO LIKE:

Why This IBD Tool Simplifies The Search For Top Stocks

IBD Digital: Unlock IBD’s Premium Stock Lists, Tools And Analysis Today

How To Invest: Rules For When To Buy And Sell Stocks In Bull And Bear Markets

Tesla, ServiceNow Headline Big Earnings Week: Action Plan

Bullish Trend Continues; Optimize Your Portfolio



Related Posts