Spirit Airlines Inc SAVE said it expects first-quarter FY24 revenue of approximately $1.265 billion versus the previous estimate of $1.250 billion – $1.280 billion and consensus of $1.273 billion.
The company also expects first-quarter capital expenditures of approximately $30 million, primarily related to expenses related to the construction of Spirit’s new headquarters campus in Dania Beach, Florida, and the purchase of replacement parts.
Read also: Navigation Turbulence: Spirit Airlines Gives Pilots Furlough Amid Plane Delivery Postponements
Spirit Airlines estimates it ended the first quarter of 2024 with $1.2 billion in unrestricted cash and cash equivalents and short-term investment securities and $300 million in liquidity under the company’s revolving credit facility.
The company expects an adjusted operating margin for the quarter of (14.5)% – (13.5)% compared to the previous forecast of (15)% – (12)%.
On March 26, 2024, Spirit entered into an agreement with International Aero Engines, LLC (IAE), an affiliate of Pratt & Whitney, under which IAE will provide Spirit with monthly credit through the end of 2024.
The estimated impact of the deal on Spirit’s liquidity for full-year 2024 is currently expected to be between $150 million and $200 million.
See also: JetBlue and Spirit Airlines scrap $3.8 billion merger deal
Price action: SAVE shares are trading 8.6% higher at $4.54 at last check on Monday.
Photo via Wikimedia Commons
Market news and data powered by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.