What's Going On With Spirit Airlines Stock Wednesday?

Spirit Airlines, Inc. SAVE stock is moving lower on Wednesday after the company filed a Form 12b-25 with the Securities and Exchange Commission (SEC).

The Details: Spirit filed the form, signaling it cannot submit its 2024 third-quarter earnings on time, as the company has diverted resources from reviewing and completing financial statements to ongoing debt restructuring discussions.

The talks are specifically in regard to about $1 billion worth of senior secured notes due in 2025 and $500 million worth of convertible senior notes due in 2026. Besides the debt restructuring conversations, the airline is exploring alternatives and other ways to improve liquidity.

The company said that its conversations with noteholders have been productive. It also warned that if an agreement is reached it could lead to cancellation of Spirit’s existing equity.

Although the company cannot file its third-quarter earnings on time, it did provide some financial estimates for the quarter. Specifically, the airline anticipates adjusted operating margin to fall by 12% compared to the same period last year, citing revenue challenges and rising expenses.

Spirit estimates that total operating revenues decreased by $61 million year-over-year, while total adjusted operating expenses increased by approximately $52 million.

This comes after Spirit’s merger conversations with Fronter Group Holdings Inc. ULCC fell through.

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SAVE Price Action: At the time of publication, Spirit stock is moving 57.6% lower at $1.36, according to data from Benzinga Pro.

Image: Courtesy of Spirit, Inc.