Spirit Airlines, Inc. (SAVE) skyrocketed in the pre-market after announcing fourth quarter and fiscal 2021 results and merger with Frontier in two consecutive press releases. SAVE values at $24.46 in the pre-market, gaining more than 12% from yesterday’s closing price. The stock closed at $21.73 at the end of the last trading session. The stock volume traded in the previous trading session was around 5.19 million shares.
Spirit Airlines, Inc. (SAVE) merger with Frontier Airlines
On February 7, 2022, Spirit Airlines, Inc. (SAVE) and Frontier Airlines announced in a press release today that both the companies were merging. As a result of the merger of Frontier Airlines with Spirit Airlines, America’s most competitive ultra-low-fare airline will establish. The two highly complementary networks will service over 145 destinations throughout the United States, Latin America, and the Caribbean. Even more low-cost flights to a more significant number of destinations: A $1 billion annual savings for consumers is anticipated.
Small and medium-sized urban regions in the United States benefit from airline consolidation as more competition and service are provided to them. According to the company, this fleet will be the most modern, most energy-efficient, and most environmentally friendly in the entire United States. The combination provides better opportunities and more excellent stability for 15,000 professionals, resulting in 10,000 direct jobs by 2026.
Fourth-quarter 2021 highlights
The company’s revenue was $987.6 million, and its net loss was around $87.2 million. SAVE reported diluted earnings (loss) per share of $0.80. The financial numbers improved in the third quarter compared to the fourth quarter of 2020. The revenue has almost doubled in value, and the net loss has been enhanced by more than 220%.
The impact of Covid-19 and the new variants on SAVE business
The impact of the COVID-19 pandemic has changed and evolved since its inception in early 2020. Thus, the Company’s financial and operational outlook is fluid. They continue to evaluate the pandemic’s impact on their operations and finances and change their mitigation and operating plans accordingly. The company has taken steps to ensure the safety of its customers and staff and its financial and operational health. It is owing to the devastating impact of the COVID-19 pandemic on their financial and operational outcomes for 2020.
