Spirit Airlines jetliners on the tarmac at Fort Lauderdale Hollywood International Airport. (Joe Cavaretta/South Florida Sun Sentinel/Tribune News Service via Getty Images)
Joe Cavaretta | South Florida Sun-Sentinel | Good pictures
Spirit Airlines on Friday raised its financial forecast for the fourth quarter of 2023, sending shares up 17% after a setback earlier this week following a judge's ruling blocking JetBlue Airways' purchase of the budget carrier.
the spirit said in a petition It expects revenues of around $1.3 billion at the end of the year, thanks to strong bookings, at the high end of its earlier forecasts. It estimated adjusted negative margins of 12% to 13%, an improvement from an earlier forecast of a negative margin of 19% in the last three months of the year.
The airline credited lower fuel costs and other costs in its improved estimates.
Before Friday's premarket rally, Spirit shares were down 62%, losing more than $1 billion in market capitalization over the past trading week.
The carrier had been struggling even before the antitrust ruling, warning last year of challenges including higher costs, weaker travel demand and a Pratt & Whitney engine problem that would ground dozens of its Airbus planes this year.
Spirit said Friday it expects compensation from Pratt & Whitney, a division of RTX, over that engine issue.
“Discussions with Pratt have progressed significantly since October, and while no agreement has been reached to date, the company believes the compensation it will receive will be a significant source of cash flow over the next two years,” Spirit said Friday. Filing of securities.
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