Spirit Airlines Inc SAVE said it expects a first-quarter FY24 revenue of about $1.265 billion against the previous estimate of $1.250 billion – $1.280 billion and the consensus of $1.273 billion.
The company also sees first-quarter capital expenditures of about $30 million, primarily related to expenditures related to the building of Spirit’s new headquarters campus in Dania Beach, Florida, and purchases of spare parts.
Also Read: Navigating Turbulence: Spirit Airlines To Furlough Pilots Amid Aircraft Delivery Deferrals
Spirit Airlines estimates it ended the first quarter of 2024 with $1.2 billion of unrestricted cash and cash equivalents and short-term investment securities and $300 million of liquidity under the company's revolving credit facility.
The company sees an adjusted operating margin for the quarter of (14.5)% – (13.5)% from the previous outlook of (15)% – (12)%.
On March 26, 2024, Spirit entered into an agreement with International Aero Engines, LLC (IAE), an affiliate of Pratt & Whitney, pursuant to which IAE will provide Spirit with a monthly credit through the end of 2024.
The estimated impact of the agreement on Spirit's liquidity for the full year 2024 is currently expected to be between $150 million and $200 million.
Also See: JetBlue, Spirit Airlines Scrap $3.8B Merger Agreement
Price Action: SAVE shares are trading higher by 8.6% at $4.54 on the last check Monday.
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