Spirit Airlines identifies $80 mln of annualized cost reductions; shares up
25/10/2024 15:43
(Updates)
** Shares of U.S. carrier Spirit Airlines SAVE.N rise
25.4% to $3.03, hitting more than three-month high
** Co says it identified about $80 mln of annualized cost
reductions that it plans to begin implementing in early 2025 -
filing
** Cost reductions are driven primarily by a lowering
workforce to match the co's expected flight volume - Spirit
** Co expects to end 2024 with over $1 bln of liquidity
** For full-year 2025, co estimates its capacity will be
down mid-teens percentage Y-o-Y
** Says co's Q3 2024 capacity was down 1.2% Y-o-Y, estimates
its Q4 2024 capacity will be down about 20% Y-o-Y
** Spirit has reported losses for five out of the last six
quarters
** On Tuesday, the Wall Street Journal reported that
Frontier Airlines is exploring a renewed bid for Spirit Airlines
** Including session's move, stock down about 81% YTD
(Reporting by Sukriti Gupta in Bengaluru)
((Sukriti.Gupta@thomsonreuters.com;))