SAVE - Spirit Airlines Has Fallen 82% This Year: Should You Buy the Dip for the Second Half of 2024?
2024-07-21 05:36:00 ET
Airlines are a tough business. They always have been. It's even tougher if you promise to be a low-cost provider but can't run your business without generating a profit. That is the position Spirit Airlines (NYSE: SAVE) finds itself in. After a botched merger with JetBlue , the company is reeling as cost overruns, and the hypercompetitiveness of the airline market cause it to bleed cash flow.
Spirit Airlines is down a whopping 82% this year and 97% from all-time highs. At a stock price of $2.80, is it smart to buy the dip on Spirit Airlines stock at this bargain basement price? Let's take a look and find out.
Spirit Airlines was supposed to be acquired by JetBlue in early 2024. However, a judge blocked the merger over anti-competitive concerns. Spirit Airlines is now forced to operate on its own, which caused the stock to fall over 50% the week of the announcement.
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Spirit Airlines Has Fallen 82% This Year: Should You Buy the Dip for the Second Half of 2024?