Spirit Airlines jetliners on the tarmac at Fort Lauderdale Hollywood International Airport. (Joe Cavaretta/South Florida Sun Sentinel/Tribune News Service via Getty Images)
Joe Cavaretta | South Florida Sun Sentinel | Getty Images
Spirit Airlines on Friday raised its financial forecast for the fourth quarter of 2023, sending shares up more than 20% after a rout earlier this week that followed a judge's ruling that JetBlue Airways of buying the budget carrier.
Spirit said in a filing that it expects revenue to be about $1.3 billion, at the high end of its previous forecast, thanks to strong year-end bookings. It estimated adjusted negative margins at 12% to 13%, an improvement from a previous forecast of as much as 19% negative margins for the final three months of the year.
The airline also included lower fuel costs and other expenses in its improved estimates.
Before Friday's premarket peak, Spirit's shares had fallen 62% over the past trading week, losing more than $1 billion in market capitalization as the ruling raised questions about the airline's future. Some analysts said the airline could be on its way to filing for bankruptcy protection.
The two airlines said they disagreed with the decision and were assessing next steps, which could include an appeal.
Spirit confirmed Friday that it is considering options to refinance more than $1 billion in debt maturing in 2025. The company has previously sold and leased back some of its aircraft. The airline said in the filing that it had $1.3 billion in liquidity at the end of 2023.
The airline was already struggling before the antitrust ruling and had warned last year of challenges including higher costs, weaker travel demand and a Pratt & Whitney engine problem that would ground dozens of Airbus planes this year.
Spirit said Friday it expects compensation from Pratt & Whitney, a unit of RTX, related to that engine problem.
“Discussions with Pratt have progressed significantly since October, and while no agreement has been reached to date, the company believes the amount of compensation it will receive will be an important source of liquidity in the coming years,” Spirit said Friday in his magazine. securities registration.
Spirit plans to hold a quarterly earnings call with analysts on February 8 to discuss results and prospects.