• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Stock

Spirit Airlines debt refinancing deadline extended to December

by October 18, 2024
written by October 18, 2024

By Rajesh Kumar Singh

CHICAGO (Reuters) – Spirit Airlines (NYSE:SAVE) said on Friday it has reached an agreement with its credit card processor to extend a debt refinancing deadline by two months until Dec. 23.

The extension agreement with U.S. Bank National Association provides some breathing room to Spirit to refinance its $1.1 billion loyalty bonds due to mature next year. The previous refinancing deadline was Oct. 21.

The Florida-based discount carrier also said it has fully drawn down its $300 million revolving credit facility and expects to end this year with over $1 billion in liquidity.

Spirit has been losing money despite strong travel demand. It has failed to report a profit in the last five out of six quarters, raising doubts about its ability to manage looming debt maturities.

Those concerns have hammered its shares, which have slumped about 91% this year compared with a 31% gain in S&P 500 passenger airlines index.

In a regulatory filing, Spirit said it is still in “active and constructive discussions” with its bondholders about the upcoming maturities.

Spirit has been facing an uncertain future after the collapse of its $3.8 billion merger deal with JetBlue Airways (NASDAQ:JBLU). It has warned of a bigger third-quarter loss due to a tough race for price-sensitive leisure travelers and an oversupply of airline seats in the domestic market.

It is also among the airlines most heavily affected by issues with RTX’s Pratt & Whitney Geared Turbofan engines, which have forced it to ground multiple aircraft and have left the carrier with bloated costs. It is trying to attract premium travelers to increase its revenue and doubling down on cost cuts to save cash. It has downgraded and furloughed pilots, offered voluntary unpaid leaves to flight attendants, and deferred all aircraft deliveries from Airbus.

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
Brazil’s Embraer delivers 57 non-defense aircraft in the third quarter
next post
Cigna resumes mega merger talks with rival health insurer Humana, Bloomberg News reports

You may also like

BASF results down on impairments, restructuring

January 27, 2025

European chipmakers slump as traders gauge DeepSeek AI...

January 27, 2025

Nasdaq futures tumble as China’s AI push rattles...

January 27, 2025

China Vanke’s CEO, chairman resign amid growing liquidity...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

Italy’s MPS shares fall ahead of Mediobanca board...

January 27, 2025

British Land stock drops following stake sale

January 27, 2025

UMG shares rally after new multi-year pact with...

January 27, 2025

BASF shares indicated 3% lower as impairments drag...

January 27, 2025

Ryanair cuts 2026 traffic forecast amid ongoing Boeing...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks

      June 26, 2025
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

      June 26, 2025
    • Bumble shares jump 26% as dating company plans to axe 30% of workforce

      June 26, 2025
    • Small-business AI use is lagging, but one firm is channeling Sherlock Holmes and knocking out ‘grunt work’

      June 25, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (534)
    • Stock (6,426)

    Latest News

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

    Popular News

    • Analyst lists 10 key questions for the power sector in 2025
    • Truckmaker PACCAR misses margin estimate as costs weigh

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy