Spirit Airlines stock just popped 25%: explained here

Spirit Airlines Inc (NYSE: SAVE) jumped nearly 25% in premarket today after raising its guidance for its fourth financial quarter.

Spirit Airlines’ upwardly revised guidance for Q4

The budget airline now forecasts about $1.3 billion in revenue for the current quarter on adjusted margins of negative 12% to 13%. Its previous outlook was for negative 19%.

Spirit cited strong bookings in the final months of the year and lower fuel costs for the upwardly revised guidance on Friday.

The news arrives only a day after anonymous sources said the New York listed firm was not looking is not considering restructuring – instead, it’s looking for options to refinance its debt as Invezz reported here.

Despite the surge this morning, Spirit Airlines stock is still down about 55% versus its high in late December.

Spirit expects compensation from Pratt & Whitney

Much of the recent weakness in Spirit Airlines Inc have been related to a U.S. judge ruling against its planned merger with JetBlue Airways Corporation that lowered the consensus Wall Street rating on Spirit Airlines stock to "underweight".

Other issues it has been struggling with in recent months include a problem with the Pratt & Whitney engines that are expected to ground a bunch of Airbus planes in its fleet in 2024.

Spirit Airlines does, however, expect compensation from the engine maker for the said issue, as per its securities filing on Friday.