Spirit Airlines will furlough about 330 pilots on Jan. 31, 2025, a company spokesperson told Reuters, as part of its efforts to cut costs and shore up its finances. The ultra-low-cost carrier has been losing money despite strong travel demand. It has failed to report a profit in the last five out of six quarters, raising doubts about its ability to manage looming debt maturities. Spirit furloughed 186 pilots last month. It will also downgrade 120 captains to first officers on Jan. 31, the spokesperson said. The company has been facing an uncertain future after the collapse of its $3.8b merger deal with JetBlue Airways. Spirit's shares have slumped about 84% this year. The furloughs are a result of Spirit's plans to shrink the airline. The company plans to reduce its capacity in the current quarter by 20% from a year ago. In 2025, it expects capacity to be down mid-teens year-on-year. Spirit furloughed 186 pilots last month. It will also downgrade 120 captains to first officers on Jan. 31, the spokesperson said. The company has been facing an uncertain future after the collapse of its $3.8b merger deal with JetBlue Airways. Spirit's shares have slumped about 84% this year. The furloughs are a result of Spirit's plans to shrink the airline. The company plans to reduce its capacity in the current quarter by 20% from a year ago. In 2025, it expects capacity to be down mid-teens year-on-year.<br/>
unaligned
Elliott Investment Management slightly increasing its economic exposure to 11.3% in Southwest Airlines Co. after agreeing to a truce with the carrier. The activist investor now holds a 9.95% stake in common shares plus a 1.4% through derivatives and swaps, according to a filing confirming an earlier report by Bloomberg News. The common shares portion was a slight decrease from a 10.2% stake earlier. Elliott’s holdings of common stock, which comes with voting rights, now fall below the 10% threshold required for a shareholder to call for a special shareholder meeting, an option that the firm is forgoing for now. The activist believes Southwest’s stock is still undervalued, according to people familiar with the matter who asked not to be identified discussing private information. Elliott could increase its stake, the people said, but it couldn’t be learned by how much. Representatives for Elliott and Southwest declined to comment. After flirting with a proxy fight, Elliott reached a pact with Southwest last week calling for five of the activist investor’s nominees to be added to the airline’s board. Pierre Breber, former CFO of Chevron Corp., also joined as a director, the company announced. Southwest was Elliott’s closest call to a proxy battle in the US since 2017 when the investor nominated a slate of directors at Arconic Corp. before settling that fight. <br/>
Allegiant Travel Co. shares tumbled after the discount airline forecast a worse-than-expected profit for the current quarter, citing hurricanes that devastated parts of Florida and North Carolina. Adjusted Q4 earnings will be about 50 cents a share at the midpoint of its forecast, the company said Wednesday. Analysts had expected 67 cents, according to the average of estimates compiled by Bloomberg. Effects from the storms will reduce fourth-quarter revenue by as much as $40m, Allegiant said. The outlook reflects the extent of lingering damage to areas where Allegiant has extensive service. The carrier has canceled or pulled from its schedule nearly 1,000 flights from the end of September to January because of immediate or residual hurricane damage, executives said on a conference call Wednesday. The airline’s shares fell 13% in after-hours trading in New York on Wednesday. Allegiant’s adjusted third-quarter loss of $2.02 a share was also worse than the $1.86d expected by analysts. Revenue of $562.2m topped estimates for $560.4m.<br/>
Azul SA’s credit score was cut one notch by S&P Global Ratings, which called the airline’s agreement with bondholders for additional financing a distressed transaction. S&P downgraded the Brazilian carrier to CC from CCC+ with a negative outlook, according to a statement released Wednesday. Azul inked a deal with its creditors this week for as much as $500m in new senior secured debt, with $150m to be provided initially and $250m by the end of the year. Another $100m could be unlocked at a later date, the company said in a regulatory filing. “We view this transaction, once completed, as tantamount to default,” S&P said. “While the exchange will be at par, with no initial maturity extension or change in coupons, we believe the transaction is distressed and creditors will receive less than originally promised.” The negative outlook signals that S&P will lower Azul’s credit rating to selective default if the deal closes under the current terms, the ratings company added. Azul is the only one of Brazil’s three dominant air carriers to have avoided Chapter 11 since the Covid-19 pandemic upended the industry. But it has struggled to shore up its balance sheet and manage the impact of a weak Brazilian currency, even after renegotiating with aircraft lessors and pushing back debt maturities through swap transactions. <br/>
Saudi Arabia's newest airline Riyadh Air said on Wednesday it had placed an order for 60 Airbus narrowbody A321-family jets as it prepares to start operations in 2025. The deal, signed at the Future Investment Initiative forum in Riyadh, brings to 132 the total number of jets ordered by the Saudi startup, which last year ordered 39 Boeing 787 Dreamliners with options for 33 more. Riyadh Air CE Tony Douglas told Reuters the airline now planned to start talks with Airbus and Boeing for an order of A350-1000 or 777X wide-body jets within two months. He declined to say how many wide-body aircraft the airline would order or when it intended to finalise order negotiations. Riyadh Air would receive its first A321 in the second half of 2026 with the last jet to be delivered in 2030, Douglas said, adding that the airline would later decide how many A321 and larger A321 LR and A321 XLRs would be included in the order. Financial terms were not disclosed but such a deal would be worth around $4b after typical discounts, based on estimated delivery prices from aviation consultancy Cirium Ascend. Riyadh Air, owned by Saudi Arabia's PIF sovereign wealth fund, has secured the deliveries within an unusually short lead time given the aircraft industry's congested production lines and strong demand that has seen Airbus sold out for most models through the end of the decade. Industry sources said the timing suggested Riyadh Air had been able to secure early slots as many carriers across the world struggle to make good on pending orders because of weak balance sheets.<br/>
Israeli flag carrier El Al Airlines has withdrawn its bid to buy Israel's largest credit card company, it said on Wednesday, citing its inability to meet requirements by Thursday's deadline. El Al made an offer on Oct. 16 to acquire a 45% stake in Isracard - which does not have a controlling stakeholder - in a deal valuing the credit card firm at 3.1b shekels ($834.5m). The bid comes as El Al's profit has soared, a result of its near-monopoly status and high airfares with many foreign carriers having cancelled flights amid the war in Gaza and escalating violence in the region. "Due to a short time frame made by Isracard and in view of a decline in El Al's request for an extension, El Al could not complete the checks required for investment in the company," the airline said. "Under these circumstances, and out of a commitment to a thorough and responsible examination of the investment, El Al decided to withdraw its offer." Isracard did not immediately respond to a request for comment. Insurance firm Menora Mivtachim is also in talks to buy a stake in Isracard, with a deadline of Nov. 3. El Al said it would continue to examine business opportunities compatible with its strategic plan to expand its portfolio of products and services, including in the field of credit and finance.<br/>