Spirit Airlines’ (NYSE:SAVE) stock went skyward Thursday, on reports its fourth-quarter loss narrowed to nearly $184 million, but its CEO said that the carrier is on a path back to profitability and that the domestic air travel market is improving.
The airline is trying to find its footing after domestic fares fell, a Pratt & Whitney engine issue grounded some of its Airbus planes and a judge blocked JetBlue Airways’ (NASDAQ:JBLU) planned acquisition of the carrier earlier this year. The two airlines are appealing that decision.
The failed merger has helped drive Spirit’s stock down more than 57% so far this year as investors fretted about its financial future. Spirit’s looming debt payments ahead have prompted some calls that the airline could have to restructure, or even liquidate.
On Thursday, Spirit reiterated that it “is aware of its 2025 and 2026 debt maturities and is assessing options to address those maturities when the time is appropriate.”
The budget airline has spent months looking for ways to cut costs, including adjusting its network and shifting its aircraft delivery schedule.
“The Spirit team is 100% clear and focused on the adjustments we are currently deploying and will continue to make throughout 2024 to drive us back to cash flow generation and profitability,” CEO Ted Christie said.
SAVE grabbed 46 cents, or 6.6%, to $7.41.