Oct 4, 2024 - Economy
Charted: Too low terrain
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Spirit Airlines has been weighing options to restructure its balance sheet — including a potential bankruptcy filing, according to a WSJ report.
- Shares closed down 24.6% today, off 90% now for the year.
- A Spirit spokesperson referred us to CEO Ted Christie's comments from an August earnings call, in which he called "productive conversations" with bondholders "a priority."
Context: The budget carrier has been grappling with widening losses amid growing competition and an engine recall that grounded part of its fleet.
- That's expanded the shadow of its $3.3 billion debt load, which includes over $1.1 billion in bonds coming due within a year.
The bottom line: The airline's ability to return to profitability has been in question since its sale to JetBlue was scrapped earlier this year.
