Spirit Air Stock Bounces Back As Revenue Rises

Spirit Airlines experienced a surge in morning trading following the announcement that a robust holiday travel season had bolstered its fourth-quarter revenue, as reported by the Associated Press (AP).

The airline's shares had previously lost over half of their value after a federal judge in Boston rejected JetBlue's $3.8 billion proposal to acquire Spirit, citing violations of antitrust law. I Photo: Spirit Airlines

Spirit anticipates posting revenue of $1.3 billion when it releases its results for the final quarter of 2023 early next month.

This figure aligns with the high end of previous guidance and is consistent with Wall Street projections. Spirit's stock soared more than 20% to $6.88 per share in morning trading.

Earlier in the week, the airline's shares had lost over half of their value after a federal judge in Boston rejected JetBlue's $3.8 billion proposal to acquire Spirit, citing violations of antitrust law.

The sale to JetBlue represented a lifeline for Spirit, which faces $1.1 billion in debt maturing next year. Some Wall Street analysts suggested this week that without an acquisition, Spirit's only viable path forward is bankruptcy.

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