Spirit Airlines luggage tags are seen near the check-in counter at Austin-Bergstrom International Airport on April 10, 2024 in Austin, Texas.
Brandon Bell | Getty Images
spirit airlines Shares soared on Friday after the troubled budget airline said it would cut jobs and sell aircraft.
The stock closed the day up 16% at $2.79 per share.
Late Thursday, the airline laid out a plan to cut costs and raise cash by selling 23 older Airbus planes. Spirit said in a securities filing that the sale would bring in $519 million.
It also said it would reduce costs by about $80 million, mostly through job cuts.
Last week the airline again postpone deadline The company will refinance more than $1 billion in debt through the end of December, giving its credit card processors breathing room.
Spirit Airlines has been struggling to return to profitability after the outbreak, facing changes in travel demand and the grounding of dozens of airlines. Pratt & Whitney Powered aircraft.
Despite gains on Friday, Spirit shares have plunged more than 80% this year following the judge’s hearing blocked Its planned acquirer is JetBlue Airways.
Spirit Airlines jetliner on the tarmac at Fort Lauderdale-Hollywood International Airport. (Joe Cavaretta/South Florida Sun-Sentinel/Tribune News Service via Getty Images)
Joe Cavaretta | South Florida Sun-Sentinel | Getty Images
Spirit did not immediately comment on how many employees it would cut, but said production capacity in 2025 would be about 10 percent lower than this year. In September, the company began furloughing about 200 pilots. The airline said cabin crew were “in a strong position” as many crew members took voluntary leave.
Earlier this week, The Wall Street Journal reported that Spirit and Frontier Airlines Merger discussion resumed, Stock price moves higher. The airline had no immediate comment. The two low-cost airlines had reached a merger agreement, but due to JetBlue AirwaysAn offer to buy Spirit outright was made in April 2022.
Late Thursday, Spirit forecast third-quarter operating margins of 24.5%, better than its previous forecast of negative margins of 29% for the three-month period.
