I’ve been seeing so many articles bringing up bankruptcy talks involving Spirit Airlines (SAVE).. and it’s been beating down on the stock. I think it’s a great opportunity for a value play. Company has over a billion dollars in liquidity and can shore up more by selling aircraft and leasing them back. They are also due a huge payout from Pratt & Whitney for the grounding of their jets. The looming maturing debt also can be refinanced in 2025 but somehow this is highlighted as a surefire path to Chapter 11 in the media.
That being said, what the company needs to do now is to cut costs and increase revenue through reroutes (which they have started) and pricing efficiency. My guess is even with their current high cash burn, the company can last atleast two years. But my bet is that they will enter merge talks with another carrier, most likely Frontier again, sometime this year and be acquired.
