Spirit Airlines Faces Potential Liquidation Amid Financial Struggles
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy JBLU?
Source: CNBC
- Liquidation Risk: Spirit Airlines could begin liquidation as early as this week, having faced two bankruptcies within a year and now contending with soaring fuel prices, which exacerbate its financial troubles.
- Industry Challenges: The airline's predicament highlights the high costs and shifting demand faced by U.S. carriers post-pandemic, particularly impacting those focused on domestic routes, as the industry wraps up a busy spring break season.
- Declining Profitability: While Spirit forecasted a net profit of $252 million for 2024, it reported a loss of nearly $257 million from March to June 2023, indicating a severe deterioration in its financial health.
- Blocked Merger: The airline's acquisition by JetBlue Airways was thwarted by antitrust rulings, leaving Spirit isolated in a market dominated by larger carriers, which intensifies its struggle for survival.
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Analyst Views on JBLU
Wall Street analysts forecast JBLU stock price to fall
10 Analyst Rating
0 Buy
5 Hold
5 Sell
Moderate Sell
Current: 5.870
Low
3.50
Averages
4.69
High
7.00
Current: 5.870
Low
3.50
Averages
4.69
High
7.00
About JBLU
JetBlue Airways Corporation provides air transportation services across the United States, Latin America, the Caribbean, Canada, and Europe. The Company offers customers a choice of one of three JetBlue experiences: the core experience, EvenMore and Mint. Within the core experience, there are four fares to choose from: Blue Basic, Blue, Blue Plus, and Blue Extra. All JetBlue fares include a free carry-on bag, free seatback entertainment, free high-speed Wi-Fi, free snacks, and free non-alcoholic beverages. Its entire fleet is equipped with Fly-Fi, a broadband product that allows gate-to-gate Wi-Fi at every seat. It also offers seatback screens across its fleet, with AVANT systems installed on the majority of its aircraft. The Company also sells vacation packages through its subsidiary, Paisly, LLC, which offers one-stop, value-priced vacation services for self-directed packaged travel planning.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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