# Spirit Airlines Raises Financial Forecast for Q4 2023, Shares Soar
Spirit Airlines has raised its financial forecast for the fourth quarter of 2023, leading to a surge of more than 30% in its shares. This comes after a recent judge’s ruling that blocked JetBlue Airways from acquiring the budget carrier.
## Strong Bookings Drive Revenue Expectations
According to a filing by Spirit Airlines, the company expects revenue to reach approximately $1.3 billion, which is at the high end of its previous forecast. The strong bookings at the end of the year have contributed to this positive outlook. Additionally, the airline anticipates improved adjusted negative margins of 12% to 13%, a significant improvement from its previous forecast of up to a 19% negative margin for the last three months of the year.
## Lower Costs and Expenses Contribute to Improved Estimates
Spirit Airlines attributes its improved financial estimates to lower fuel costs and other expenses. These factors have positively impacted the company’s profitability and outlook.
## Previous Challenges and Market Reaction
Prior to this positive news, Spirit Airlines had experienced a significant decline in its stock price, losing 62% of its value and over $1 billion in market capitalization. The judge’s ruling had raised concerns about the airline’s future, with some analysts speculating that bankruptcy protection could be on the horizon.
## Exploring Options for Debt Refinancing
In addition to the improved financial forecast, Spirit Airlines confirmed that it is considering options to refinance its debt of over $1 billion, which is set to mature in 2025. The company had previously sold and leased back some of its aircraft. As of the end of 2023, Spirit Airlines had $1.3 billion in liquidity.
## Pratt & Whitney Engine Problem and Compensation
The airline had been facing challenges even before the antitrust ruling, including higher costs, weaker travel demand, and an engine problem with its Airbus planes. However, Spirit Airlines expects compensation from Pratt & Whitney, a unit of RTX, for the engine issue. Discussions with Pratt have progressed, and while no agreement has been reached yet, Spirit believes that the compensation will provide a significant source of liquidity in the coming years.
## Analyst Call and Future Outlook
Spirit Airlines plans to hold a quarterly call with analysts on February 8th to discuss its financial results and future outlook. This call will provide further insights into the company’s performance and plans moving forward.
(Source: [CNBC](https://www.cnbc.com/))
