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 | Getty Images
Spirit Airlines on Friday raised its financial forecast for the fourth quarter of 2023, sending shares soaring 17% after a rout earlier this week following a judge’s ruling that blocks JetBlue Airways from buying the budget carrier.
Spirit said in a filing that it expects revenue to come in at about $1.3 billion, at the high end of its earlier forecasts, thanks to strong bookings at the end of the year. It estimated adjusted negative margins of 12% to 13%, improvement from a previous forecast for as much as a 19% negative margin for the last three months of the year.
The airline also credited lower fuel costs and other expenses in its improved estimates.
Prior to Friday’s premarket surge, Spirit shares had shed 62% and lost than $1 billion in market capitalization over the last trading week.
The carrier had been struggling even before the antitrust ruling and had last year warned about 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 unit of RTX, in connection with that engine issue.
“Discussions with Pratt have progressed considerably since October, and while no agreement has been reached to date, the Company believes the amount of compensation it will receive will be a significant source of liquidity over the next couple of years,” Spirit said Friday in is securities filing.
This is breaking news. Check back for updates.
This story originally appeared on CNBC
