Spirit may have staved off bankruptcy, at least for the moment.
Spirit Airlines plans to cut jobs, sell planes and shrink its footprint next year. The budget carrier is struggling from the fallout of a scuttled acquisition, an engine recall and an oversupplied U.S. market
On Thursday, Spirit Airlines unveiled plans to cut costs and raise cash amid bankruptcy reports. Its stock rose after it said it would sell $519 million of Airbus jets and cut staff.
Spirit Airlines (SAVE) shares are surging 12% in premarket trading Friday after the discount carrier said it plans to cut jobs and sell some planes as it tries to shore up its finances.
Embattled discount airline Spirit Airlines Inc. on Thursday said it would cut staff, scale back flight coverage and sell jets as it seeks a lifeline following its failed merger with JetBlue Airways Corp. earlier this year.
Transportation stocks typically indicate the economy's current state, while airline stocks gauge the consumer cycle's direction instead. Recently, shares of Spirit Airlines Inc. NYSE: SAVE have nearly doubled after the company struck a new deal to help keep its debt burden flexible ahead of bond maturities in 2025.
The company is reportedly back in merger talks with Frontier.
After concern mounted earlier this month that Spirit Airlines was set to announce bankruptcy, the company has lived to see another day in the sky—for now.
The deadline extension allows Spirit some wiggle room to refinance its $1.1 billion in secured debt due to mature next year.
The troubled airline has more time to work out its debt issues.
Spirit Airlines' stock swelled by 60% on Monday, on track for the low-cost airline's best day since going public, after the carrier announced an extension to refinance its debt while temporarily avoiding the threat of bankruptcy.
Spirit Airlines (SAVE) shares jumped nearly 40% in premarket trading Monday as markets reacted to a late-Friday filing that saw the discount carrier say it has extended the deadline on a debt refinancing plan with credit card processors Visa (V) and Mastercard (MA).