In premarket movements today, spirit Airlines’ stock has seen a 37% rise. Today, company stock is at 2.02 and still moving – a positive shift compared to its 1.47 value recorded at the close of trade on Friday. This is positive news for shareholders after stock prices dropped as low as 77% earlier in the year.
The company has not reported any profits since the pandemic.
The airline, which has been facing financial difficulties, recently announced that it has secured an extension to refinance its debt. Spirit has pushed the deadline to December 23rd. The company disclosed that $300 million is available in this line of credit.
Earlier this year, Spirit decided to back out of a planned merger with rival JetBlue; however, according to CEO Ted Christie, bankruptcy is off the table. “We are proudly executing our plan as we’ve exited the merger agreement with JetBlue and are encouraged by the initial results of our stand-alone plan,” Christie said at an annual shareholder meeting earlier in the year. “We are not evaluating a Chapter 11 at this time.”
Spirit must extend or refinance its 2025 bonds by December 23 to maintain its processing deal with the U.S. Bank National Association.
By CEO NA Editorial Staff
