Spirit Airlines (SAVE -14.84%) is struggling to keep its planes flying on schedule. That, coupled with continued concerns about the delta variant, have Spirit shares down as much as 5% in Thursday trading. So what Spirit is facing a lot of headwinds right now.
Full Answer
Why did Spirit Airlines stock fall more than other carriers?
Oct 13, 2021 · Why Spirit Airlines Stock Fell Today By Lou Whiteman - Oct 13, 2021 at 4:55PM Key Points Spirit and other airlines fell on Wednesday after Delta Air Lines reported third-quarter results, and warned...
Why did Delta Air Lines'stock fall?
May 02, 2022 · Spirit Airlines (NYSE: SAVE) isn’t flying too high this morning. The airline is watching shares sink this morning after rejecting an offer to be bought by …
Why is Spirit Airlines under pressure right now?
Aug 19, 2021 · The airline's operational meltdown continues to weigh on investors. What happened Spirit Airlines ( SAVE -14.84%) is struggling to keep its planes flying on schedule. That, coupled with continued...
Is Spirit Airlines'cost advantage diluted in a high fuel environment?
Feb 11, 2021 · The company also said it doesn't see a rebound anytime soon, and it expects first-quarter capacity to be down 17% year over year. Image source: Spirit Airlines. Expenses will also be an issue this ...
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Apr 28, 2021 · What happened. Spirit Airlines ( SAVE-0.69%) shareholders have enjoyed a nice recovery in 2021 after a miserable 2020. But on Wednesday a Wall Street analyst said the stock has gotten ahead of the ...
The airline's operational meltdown continues to weigh on investors
Lou has followed the markets for more than two decades, developing extensive contacts including industry leaders, consultants, regulators, and labor representatives. He spends a lot of time these days focused on the industrials and financials.
What happened
Spirit Airlines ( NYSE:SAVE) is struggling to keep its planes flying on schedule. That, coupled with continued concerns about the delta variant, have Spirit shares down as much as 5% in Thursday trading.
So what
Spirit is facing a lot of headwinds right now. Earlier this week the airline cut third-quarter revenue expectations due to a combination of severe weather and staffing shortages, which caused Spirit to cancel a large number of flights.
Now what
The lowered guidance was no surprise, as Spirit is clearly dealing with a major meltdown. The issues will take time to fix, and could linger into the beginning of the fourth quarter, but it is unlikely there will be a long-term impact for Spirit or its shareholders.
Has the stock gone too far? One analyst thinks so
Lou has followed the markets for more than two decades, developing extensive contacts including industry leaders, consultants, regulators, and labor representatives. He spends a lot of time these days focused on the industrials and financials.
What happened
Spirit Airlines ( NYSE:SAVE) shareholders have enjoyed a nice recovery in 2021 after a miserable 2020. But on Wednesday a Wall Street analyst said the stock has gotten ahead of the recovery, causing shares to fall 5%.
So what
Airlines were hit hard last year by the pandemic, with demand for travel all but evaporating, but the stocks have recovered in recent months on hopes that as vaccination becomes more widespread, demand for travel will return.
Now what
Pfennigwerth has a $40 price target on Spirit shares, which is above the current trading price, indicating he is not hitting the panic button. I tend to agree with him on the relative valuation of airline stocks compared to before the pandemic, and I made a similar point back in March.
