In today’s changing world, many have turned their attention to the skies, specifically, the realm of air travel. Spirit Airlines, known as the leading Ultra-Low-Cost Carrier in the American market, is a buzzword among investors. Today, we will take a comprehensive journey into the world of Spirit Airlines stock.
First, let’s delve into the core business model of Spirit Airlines. It prides itself on an unbundled, stripped-down, a la carte approach. This means customers only pay for the options they choose, like bags, seat assignments, and refreshments – an enticing factor for budget-conscious travelers.
However, investing in airlines doesn’t come without turbulence. The airline industry can be influenced by factors like fuel costs, weather disruptions, and geopolitical events. But, Spirit’s focus on domestic, short haul, and point-to-point routes reduces some of these risks.
Now, let’s take a detailed look at Spirit Airlines’ performance in the stock market:
1. **Historical Performance:** Since its Initial Public Offering (IPO) in 2011, Spirit Airlines has had an undulating journey in the stock market. However, it’s critical to note that despite some turbulence, the overall trend has been upward till the beginning of 2015
2. **Present Scenario:** As the world is recovering from the pandemic, Spirit Airlines’ stock has shown signs of resurgence. While 2020 was a challenging year for airlines, Spirit managed to navigate the storm. However, it still far from an all time high of 82$. Recently a judge blocked the proposed acquisition by Jetblue. As a result, the stock price tumbled from 14$ to 6$
The future for this airline seems uncertain as the company continues to bleed money. With the merger down the drain, the next viable option seems bankruptcy to restructure its debt. A cryptonight for investors.
