SAVE - Spirit Airlines: A Terrible Addition To A Portfolio

2024-04-10 09:46:37 ET

Summary

• Spirit Airlines stock has plummeted 89% since 2018, while Delta Air Lines has outperformed it by 75 percentage points.
• Spirit Airlines' operating metrics, including low per-unit profits ex-fuel and a highly leveraged balance sheet, are concerning.
• Despite increasing capacity and revenues, Spirit Airlines' efficiency has suffered. The airline is not expected to produce positive earnings for at least another three years.

I won't claim to be a great stock picker necessarily, but sometimes the numbers tell a clear enough story to make the buy or sell (or "stay away") decision a bit easier....

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