Spirit Airlines narrowed quarterly losses in the fourth-quarter and its CEO says it is on the way back to profit.
It reduced losses but its stock price is down 57% this year, after the JetBlue Airways’ proposed acquisition was blocked.
Although the two airlines plan to appeal, investors are pessimistic about their chances – and Spirit’s long-term future.
Spirit’s net loss of $183 million was an improvement on the loss of $270 million a year ago although revenue was down 5%.
Revenue per passenger fell 25% in the fourth quarter.
Still, CEO Ted Christie remains upbeat.
“The Spirit team is 100% clear and focused on the adjustments we are currently deploying and will continue to make to drive us back to profitability,” Christie said.
The airline expects to remain in the red in the first quarter of this year.
The budget carrier is also struggling due to the grounding of several Airbus jets du to an ongoing issue with Pratt & Whitney engine.
Perhaps most critical of all are debt maturities due in ‘2025 and 2026.
Spirit says it is ‘assessing options to address those maturities when the time is appropriate.’
