Why Shares of Spirit Airlines Are Falling Today
Shares of Spirit Airlines (NYSE: SAVE) were down 13% on Thursday morning after the discount airline posted a first-quarter loss and announced it was raising fresh liquidity via a stock and convertible bond offering. The company, like all airlines, is struggling due to the COVID-19 pandemic, but the market's reaction appears to be overdone.
After markets closed Wednesday, Spirit reported a first-quarter loss of $0.86 per share on revenue of $771.1 million, falling short of the consensus estimate for a loss of $0.62 per share on sales of $810 million.
The loss was expected, with airlines hit hard by a dramatic decline in air travel due to the pandemic. The current quarter's results are likely to be much worse, with Spirit bringing down capacity by 75% in April and expected to bring down its schedule by 95% in May and June.
Source Fool.com
