Spirit jumps 17% after raising fourth-quarter forecast, plans to refinance debt

Spirit Airlines Friday raised its financial forecast for the fourth quarter of 2023 and said it is looking to refinance its debt, sending its shares soaring more than 17%. A rout earlier this week followed a judge’s ruling on Tuesday that blocks JetBlue Airways from buying the budget carrier. Spirit said in a filing that it expects revenue to come in at about $1.3b, at the high end of its earlier forecast, thanks to strong bookings at the close of the year. It estimated adjusted negative margins of 12% to 13%, an improvement from a previous forecast for as much as a 19% negative margin for the last three months of the year. The airline also credited lower fuel costs and other expenses for its improved estimates. Friday’s gains weren’t enough to erase Spirit stock’s losses this week. Shares shed 55% through Friday’s close and lost more than $873 million in market capitalization as the ruling raised questions about the airline’s future while it was on already shaky footing. Some analysts said the carrier could be on track to file for bankruptcy protection, if not liquidate altogether. The two airlines said they disagreed with the decision and were assessing next steps, which could include an appeal.<br/>