Core Viewpoint - The airline sector, particularly Spirit Airlines, is facing significant challenges, including potential bankruptcy concerns and declining demand for domestic fares [1][2][4]. Group 1: Company Challenges - Spirit Airlines experienced a 17.8% decline in shares in July, exacerbated by discussions of a potential bankruptcy filing [1]. - The planned acquisition by JetBlue Airways fell through due to regulatory issues, leaving Spirit to navigate a tough market with softening demand and limited pricing power [2]. - The airline is significantly affected by an RTX engine issue, limiting its ability to adjust capacity in response to demand fluctuations [2]. Group 2: Financial Performance - Concerns about Spirit's second-quarter results led to downgrades and price-target cuts, which were confirmed when the airline lowered its revenue outlook for the quarter [3]. - On August 1, Spirit reported Q2 results that missed the lowered guidance, resulting in an additional 8% drop in shares [5]. Group 3: Debt and Bankruptcy Risks - Spirit Airlines has a considerable amount of debt that needs to be renegotiated soon, with the possibility of bankruptcy if negotiations fail [4]. - While creditors are expected to work with Spirit on its debt issues, the airline's competitive pressures make it challenging to foresee profitability in the near future [6]. Group 4: Industry Context - The challenges faced by Spirit are reflective of broader pressures in the airline industry, particularly as domestic demand softens [7]. - Airlines that depend heavily on U.S. leisure travel, like Spirit, are more vulnerable compared to those with strong international alliances and established business accounts [7]. Group 5: Investment Considerations - Spirit shares are currently considered cheap, but this pricing reflects the underlying challenges the company faces [8]. - Investors are advised to approach potential investments in Spirit with caution, limiting exposure to a small portion of a diversified portfolio [8].

For the quarter ended June 2024, Spirit (SAVE) reported revenue of $1.28 billion, down 10.6% over the same period last year. EPS came in at -$1.44, compared to $0.29 in the year-ago quarter. The reported revenue represents a surprise of -1.91% over the Zacks Consensus Estimate of $1.31 billion. With the consensus EPS estimate being -$1.30, the EPS surprise was -10.77%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their ...

Spirit (SAVE) came out with a quarterly loss of $1.44 per share versus the Zacks Consensus Estimate of a loss of $1.30. This compares to earnings of $0.29 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -10.77%. A quarter ago, it was expected that this airline would post a loss of $1.43 per share when it actually produced a loss of $1.46, delivering a surprise of -2.10%. Over the last four quarters, the company has surpassed ...

EXHIBIT 99.1 Spirit Airlines Reports Second Quarter 2024 Results Ended the Second Quarter 2024 with $1.14 Billion of Liquidity DANIA BEACH, Fla., August 1, 2024 - Spirit Airlines, Inc. ("Spirit" or the "Company") (NYSE: SAVE) today reported second quarter 2024 financial results. | --- | --- | --- | |-----------------------------------|------------------|--------------------------| | | As Reported | (unaudited) \n1 Adjusted | | Total operating revenues | $1,280.9 million | $1,280.9 million | | Operating inco ...

Ended the Second Quarter 2024 with $1.14 Billion of Liquidity DANIA BEACH, Fla., Aug. 1, 2024 /PRNewswire/ -- Spirit Airlines, Inc. ("Spirit" or the "Company") (NYSE: SAVE) today reported second quarter 2024 financial results. Second Quarter 2024 Financial Results | --- | --- | --- | |-------------------------------------------------------|------------------------------|--------------------------| | | (unaudited) | | | | As Reported | Adjusted1 | | Total operating revenues | $1,280.9 million | $1,280.9 mill ...

Core Insights - Spirit Airlines is introducing new pricing options to enhance customer experience by offering more perks for higher seat prices [1][6]. Pricing Options - The new seating options will be rolled out in two phases: "Go" and "Go Savvy" starting on August 16, and "Go Comfy" and "Go Big" starting on August 27 [5][6]. - The four new options include: - **Go Big**: Offers a Big Front Seat, snacks and drinks (including alcohol), one carry-on bag, one checked bag, priority check-in and boarding, and streaming access [7]. - **Go Comfy**: Provides increased comfort with a blocked middle seat, one carry-on bag, one checked bag, priority boarding, and a snack with a non-alcoholic beverage [7]. - **Go Savvy**: Includes either one carry-on bag or one checked bag and standard seat selection during booking [7]. - **Go**: Features budget pricing with the option to purchase checked bags, standard seat selection, WiFi, and snacks and beverages [7]. Market Reaction - Spirit Airlines' stock (SAVE) has seen a slight decline as of Wednesday morning [3].

The airline has been losing money despite booming travel demand, raising questions about its ability to manage debt that is due to mature in 2025 and 2026. The airline has been losing money despite booming travel demand, raising questions about its ability to manage debt that is due to mature in 2025 and 2026. Getty Images A greater willingness on the part of air travelers to pay up for more comfort and a better experience has prompted US carriers to find ways to attract them. Spirit Airlines said there wil ...

Core Insights - Spirit Airlines is launching new premium offerings to enhance the low-fare travel experience starting August 2024 [1][2] - The new options aim to provide travelers with elevated experiences at affordable prices, responding to customer feedback [2] New Travel Options - Spirit will introduce four new travel options: Go Big, Go Comfy, Go Savvy, and Go, all available for booking starting August 16, 2024, and launching the new experience by August 27, 2024 [2][4][5] - Go Big includes a Big Front Seat®, snacks and drinks (including alcohol), one carry-on bag, one checked bag, priority check-in and boarding, and streaming access through the fastest Wi-Fi of any U.S.-based airline [3] - Go Comfy offers increased comfort with a guaranteed blocked middle seat, one carry-on bag, one checked bag, priority boarding, and a snack and non-alcoholic beverage [4] - Go Savvy provides the choice of either one carry-on bag or one checked bag and standard seat selection during booking [4] - Go is the most affordable option, allowing travelers to purchase additional services like checked bags and snacks [5] Enhanced Services - A designated priority check-in experience will be available for Go Big passengers and Free Spirit® Gold members at over 20 airports starting August 27, 2024 [6] - The new boarding process will feature five groups to reduce boarding time and enhance operational performance, with priority boarding for specific passenger categories [7] Guest-Friendly Policies - Spirit Airlines has introduced new guest benefits, including no change or cancellation fees, increased checked bag weight allowance up to 50 pounds, and extended Future Travel Vouchers expiration to 12 months for vouchers issued on or after June 3, 2024 [8]

Spirit Airlines (SAVE 2.78%) has experienced nothing but turbulence lately. The company is dealing with the fallout of a failed merger attempt with JetBlue and has struggled to get on better financial footing. Perhaps a successful turnaround is on the horizon. Should investors buy this struggling airline stock? After the proposed merger with JetBlue was blocked by a federal judge earlier this year, it seemed like shareholders were disappointed. The objective of the deal was to create a more powerful domesti ...

Wall Street expects a year-over-year decline in earnings on lower revenues when Spirit (SAVE) reports results for the quarter ended June 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move ...