Spirit CEO says airline will not file for bankruptcy
Spirit CEO Ted Christie said he’s “encouraged” by its plan after the JetBlue deal collapse.
TheStreet's Conway Gittens brings the latest business headlines from the floor of the New York Stock Exchange as markets close for trading Friday, June 7.
Related: Spirit Airlines makes a baggage change that passengers will like
Full Video Transcript Below:
Conway Gittens: I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
Stocks were very little changed on Friday, as investors spent the session guessing what a strong jobs report means for next week’s Federal Reserve meeting. The U.S. economy added 272,000 jobs in May. Most of the hiring came in health care, government, and leisure and hospitality. Meanwhile, take-home pay jumped 4 percent from a year ago. On the down side, however, the unemployment rate ticked higher to 4 percent for the first time since January 2022.
There’s more than just a Fed meeting to consider in the coming week. Updates on consumer and producer prices will give insight on inflation. And eyes will be on Apple’s annual developers conference for its AI strategy.
Looking at other news: bankruptcy is not on the table for Spirit Airlines. Company CEO Ted Christie made that declaration at the company’s annual shareholder meeting. There is speculation the discount carrier is in financial trouble after a federal judge blocked JetBlue’s takeover deal in January.
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Christie told investors “we are proudly executing to our plan as we’ve exited the merger agreement with JetBlue and are encouraged by the initial results of our stand-alone plan.”
S&P Global ratings sounded the alarm on June 5th, warning Spirit could have trouble paying a $1.1 billion loyalty bond due in 2025 and a $500 million convertible note that comes due in 2026.
Spirit is doing what it can to recalibrate after the blocked JetBlue deal. It is delaying some new plane deliveries and relaxing numerous add-on fees that may have convinced travelers to consider competitors.
That’ll do it for your daily briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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