2024-01-18 16:30:48 ET
Spirit Airlines Inc (NYSE: SAVE) pared back intraday losses before close on Thursday following a report that it is not considering restructuring.
Spirit Airlines has debt coming due in Sept
The airline stock tanked sharply this morning after the Wall Street Journal said the budget carrier was exploring restructuring options.
But the sell-off reversed in recent hours after an anonymous source told Reuters that what the New York listed firm was evaluating were options to refinance its debt – and not restructuring.
Spirit will continue to take steps to shore up its balance sheet. What we’re looking at is refinancing debt.
Note that Spirit Airlines Inc has debt worth $1.1 billion coming due in September of 2025. Its shares are down an alarming 73% versus their 52-week high at writing.
Watch here: https://www.youtube.com/embed/z-aUG3IzyQE?feature=oembedWall Street has been downgrading
Spirit Airlines also plans on slamming the brakes on capacity growth and trim up to $100 million in structural costs, as per Reuters.
Shares of the Florida-based air carrier have been under immense pressure in recent days after a U.S. judge blocked its planned merger with JetBlue Airways Corporation.
That made several Wall Street analysts downgrade the ultra-low-cost airline on concerns that it may now have to file for Chapter 11 bankruptcy.
Spirit Airlines Inc is expected to report its financial results for the fourth quarter in the first week of February. Consensus is for it to lose $1.59 versus per-share “earnings” of 12 cents a year ago.
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