2024-07-19 16:42:58 ET
Summary
- Spirit Airlines released weak preliminary Q2 2024 numbers due to a domestic yield dip from overcapacity.
- The airline industry has already solved the issue by adjusting capacity to match record passenger travel, with a fare turnaround expected in the next 30 days.
- The stock faces slight bankruptcy risk, but the potential is to return to much higher prices achieved prior to the JetBlue deal.
In no huge surprise, Spirit Airlines, Inc. ( SAVE ) is set to report a weak Q2 as domestic yields dipped due to overcapacity. The airline sector is quickly adjusting capacity to match what's actually record passenger travel in a sign of how the sector has evolved over time. My investment thesis remains Ultra Bullish on the stock with a fare turnaround set to occur in the next 30 days....
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Spirit Airlines: Overstated Fears