Spirit forecasts steeper loss on 'intense competitive battle' for leisure travelers

Spirit Airlines on Thursday warned of a steeper loss in the current quarter, citing an "intense competitive battle" for the price-sensitive leisure travelers as well as an oversupply of airline seats in the domestic market. The airline has failed to report a profit in the last five out of six quarters despite strong travel demand, raising questions about its ability to manage debt that is due to mature in 2025 and 2026. CEO Ted Christie said Spirit is engaged in "productive conversations" with bondholders to address the upcoming debt maturity, calling it a "priority" for the company. "We are focused on refinancing our debt, improving our overall liquidity position," he said. Spirit's shares have fallen more than 82% this year, compared with a 0.06% decline in S&P 500 passenger airlines index. Its shares were down about 7% at $2.80 in afternoon trade. The Florida-based ultra-low-cost carrier's troubles, along with those at some of its rival budget carriers, are making some analysts and industry officials wonder if their business models are broken. Christie said while the low-fare business model is not broken, excess industry capacity is hurting pricing power. The company said it is aggressively managing capacity to better match seasonal and daily demand variances, and has exited 42 markets.<br/>