Spirit Airlines (SAVEQ) is progressing with its bankruptcy as the air travel company conducts an equity rights offering to raise funds. The company’s offering started on Dec. 30, 2024, and will last through Jan. 30, 2025. SAVEQ will sell up to $350 million of equity securities during that period. These cover the company after its reorganization through the bankruptcy filing.
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While an equity offering is a step in the right direction for Spirit Airlines exiting bankruptcy, it’s still a risky investment. The company warns that there’s no guarantee investors will see a return on the equity securities. Additionally, traders will note that the airline had $580 million in debt when it filed for bankruptcy.
Spirit Airlines Continues to Cancel Flights
While Spirit Airlines has said it will continue operations throughout the bankruptcy process, the company is dealing with some troubles on that front. That includes ongoing flight cancellations as it adjusts its routes for 2025.
Flights affected by this change include those between Los Angeles and Columbus, which are no longer offered this year. Florida is also suffering the effects of flight cuts with 84 dropped in February 2025. All of this comes as the company blames the availability of RTX Corp’s (RTX) Pratt & Whitney GTF engine for its struggles.
Is SAVEQ Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Spirit Airlines is Strong Sell based on one Hold and four Sell ratings over the last three months. With that comes an average price target of $1.25, a high of $2, and a low of 50 cents. This represents a potential 273.13% upside for SAVEQ shares. Investors will also note that the stock trades on the OTC Pink Market after being delisted from the New York Stock Exchange on Dec. 5, 2024.
