Spirit Airlines says it’s on the path back to profitability, with or without JetBlue

Spirit Airlines’ CEO said Thursday the domestic market is improving and defended the budget airline’s ability to generate cash even without an acquisition by JetBlue Airways, which a federal judge blocked earlier this year. Spirit expects to lose money in Q1, however, and said it projects revenue of between $1.25b and $1.28b, above analysts’ forecasts. It estimated it will be cash-flow positive in Q2 of the year “and beyond.” The budget airline is trying to find its footing after domestic fares fell last year, a Pratt & Whitney engine issue grounded dozens of its Airbus planes and the JetBlue deal failed in court. The two airlines are appealing that decision, though analysts have been pessimistic about the chances of reversing the ruling. The failed merger has helped drive Spirit’s stock down more than 55% so far this year as investors fretted about its financial future. Spirit’s looming debt payments ahead have prompted some calls that the airline could have to restructure, or even liquidate. “This misguided narrative has been advanced by an assortment of pundits,” Spirit CEO Ted Christie said on an earnings call Thursday. “Liquidity is always king, and we have enhanced our levels to give us the necessary flexibility to successfully close with JetBlue or to pursue our stand-alone plans.” Spirit ended 2023 with liquidity of $1.3b. On Thursday, Spirit reiterated that it is assessing options for 2025 and 2026 debt maturities. The budget airline has spent months looking for ways to cut costs, including adjusting its network and shifting its aircraft delivery schedule. “The Spirit team is 100% clear and focused on the adjustments we are currently deploying and will continue to make throughout 2024 to drive us back to cash flow generation and profitability,” Christie said in an earnings release.<br/>