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Spirit Airlines (SAVE) Rides on Low Fuel Costs Amid Pandemic
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We recently issued an updated report on Spirit Airlines, Inc. (SAVE - Free Report) .
Spirit Airlines has been witnessing significant pressure on fares and impact on load factor since late-February. Evidently, passenger revenues plunge 51.7% year over year in the first half of 2020. Due to an unprecedented drop in passenger demand, the company’s April and May capacity was lowered by approximately 75% and 95% respectively. The same for June has been reduced by approximately 95%. Moreover, capacity contracted to the tune of 83.2% in second quarter 2020.
During the second quarter 2020, cost per available seat mile (CASM) excluding operating special items and fuel, escalated more than 100%. Moreover, the carrier's return on equity dropped to a negative territory due to the unprecedented crisis.
Nevertheless, low fuel prices are helping Spirit Airlines partly offset the adversities. Notably, average fuel cost per gallon fell 20.2% year over year to $1.7 in the first half of 2020. Additionally, the airline’s stringent cost-cutting measures support the bottom line.
The carrier exited the June quarter with cash and equivalents of $1,264 million, above the current debt of $417 million, which implies that the company has sufficient cash to meet its short-term debt obligations.
Zacks Rank & Stocks to Consider
Spirit Airlines currently carries a Zacks Rank #4 (Sell).
Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, United Parcel and Canadian Pacific is pegged at 15%, 7.7% and 8%, respectively.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
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Spirit Airlines (SAVE) Rides on Low Fuel Costs Amid Pandemic
We recently issued an updated report on Spirit Airlines, Inc. (SAVE - Free Report) .
Spirit Airlines has been witnessing significant pressure on fares and impact on load factor since late-February. Evidently, passenger revenues plunge 51.7% year over year in the first half of 2020. Due to an unprecedented drop in passenger demand, the company’s April and May capacity was lowered by approximately 75% and 95% respectively. The same for June has been reduced by approximately 95%. Moreover, capacity contracted to the tune of 83.2% in second quarter 2020.
During the second quarter 2020, cost per available seat mile (CASM) excluding operating special items and fuel, escalated more than 100%. Moreover, the carrier's return on equity dropped to a negative territory due to the unprecedented crisis.
Spirit Airlines, Inc. Price
Spirit Airlines, Inc. price | Spirit Airlines, Inc. Quote
Nevertheless, low fuel prices are helping Spirit Airlines partly offset the adversities. Notably, average fuel cost per gallon fell 20.2% year over year to $1.7 in the first half of 2020. Additionally, the airline’s stringent cost-cutting measures support the bottom line.
The carrier exited the June quarter with cash and equivalents of $1,264 million, above the current debt of $417 million, which implies that the company has sufficient cash to meet its short-term debt obligations.
Zacks Rank & Stocks to Consider
Spirit Airlines currently carries a Zacks Rank #4 (Sell).
A few better-ranked stocks in the Zacks Transportation sector are Knight-Swift Transportation Holdings Inc. (KNX - Free Report) , United Parcel Service, Inc. (UPS - Free Report) and Canadian Pacific Railway Limited (CP - Free Report) . Knight-Swift and United Parcel sport a Zacks Rank # 1 (Strong Buy), whereas Canadian Pacific carries a Zacks Rank # 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, United Parcel and Canadian Pacific is pegged at 15%, 7.7% and 8%, respectively.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>