Spirit Airlines CFO faces ‘uphill battle’ as airline navigates Chapter 11 process

Fortune11-19 20:30

Good morning. The largest U.S. budget airline, Spirit, announced on Monday it has filed for Chapter 11 bankruptcy protection. The company hopes to turn things around—and its new CFO will be front and ...

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The company hopes to turn things around—and its new CFO will be front and ...</p>\n\n<a href=\"https://finance.yahoo.com/news/spirit-airlines-cfo-faces-uphill-123027154.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Spirit Airlines CFO faces ‘uphill battle’ as airline navigates Chapter 11 process</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSpirit Airlines CFO faces ‘uphill battle’ as airline navigates Chapter 11 process\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-19 20:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/spirit-airlines-cfo-faces-uphill-123027154.html><strong>Fortune</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Good morning. The largest U.S. budget airline, Spirit, announced on Monday it has filed for Chapter 11 bankruptcy protection. The company hopes to turn things around—and its new CFO will be front and ...</p>\n\n<a href=\"https://finance.yahoo.com/news/spirit-airlines-cfo-faces-uphill-123027154.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SAVE","symbol_name":"Spirit Airlines","start_time":0,"source_url":"https://finance.yahoo.com/news/spirit-airlines-cfo-faces-uphill-123027154.html","article_id":"2484928298","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/5z0x54yKWKl5WV6EbXodeA--~B/aD0xMzY1O3c9MjA0ODthcHBpZD15dGFjaHlvbg--/https://media.zenfs.com/en/fortune_175/2c3ab58a6b24a32568760e43c04dbe3b"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2484928298","pubTimestamp":1732019427,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Good morning. The largest U.S. budget airline, Spirit, announced on Monday it has filed for Chapter 11 bankruptcy protection. The company hopes to turn things around—and its new CFO will be front and center in that effort.On the financial front, Spirit said it’s working to restructure and reduce its debt, and that it has received backstopped commitments for a $350 million equity investment from existing bondholders, and will complete a deleveraging transaction to equitize $795 million of funded debt. The bondholders are also providing $300 million in debtor-in-possession financing.Spirit has struggled to overcome the slowdown in travel due to the pandemic. There was also the ill-fated attempt to sell the airline to JetBlue, which was blocked in federal court. Since the start of 2020, the airline has lost more than $2.5 billion and will face emerging debt payments totaling more than $1 billion over the next year.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"SAVE":"Spirit Airlines","BK4500":"航空公司","BK4008":"航空公司"},"translate_title":"精神航空首席财务官在执行第11章程序时面临“艰苦的战斗”","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SAVE":1},"content_text":"Good morning. The largest U.S. budget airline, Spirit, announced on Monday it has filed for Chapter 11 bankruptcy protection. The company hopes to turn things around—and its new CFO will be front and center in that effort.\nOn the financial front, Spirit said it’s working to restructure and reduce its debt, and that it has received backstopped commitments for a $350 million equity investment from existing bondholders, and will complete a deleveraging transaction to equitize $795 million of funded debt. The bondholders are also providing $300 million in debtor-in-possession financing.\nSpirit has struggled to overcome the slowdown in travel due to the pandemic. There was also the ill-fated attempt to sell the airline to JetBlue, which was blocked in federal court. Since the start of 2020, the airline has lost more than $2.5 billion and will face emerging debt payments totaling more than $1 billion over the next year. \nThe Chapter 11 news comes after Spirit said last week that it wouldn’t announce its quarterly financial results as the company was focused on talks with bondholders to restructure its debt. Its CFO, Fred Cromer began in the role on July 8. Cromer has worked in the aviation industry for 30 years, most recently as CEO, and previously CFO of Xwing, Inc., an aviation technology company. He also served as CFO at ExpressJet Airlines.  \n“I surmise his top priority now is the bankruptcy process, which is meant to buy time for the airline to try and improve its business results,” Nic Owens, industrials equity analyst at Morningstar, told me. Improving Spirit’s business results will be “very difficult and may require it to cut capacity, including getting rid of some planes and probably reducing its workforce,” Owens said.\nSpirit's stock price is down about 98% from its all-time high. As a result of the Chapter 11 filing, the company said it expects to be delisted from the New York Stock Exchange in the near term. Spirit also expects to exit the bankruptcy process in the first quarter of 2025. \nThe beginning of holiday travel is just around the corner. And Spirit plans to continue operating its business “in the normal course” during the Chapter 11 process. Guests will still be able to use existing tickets, book flights, and use credits and loyalty points as normal, according to the company. Spirit also said the filing will not impact employee wages or benefits. \nAirlines typically can emerge from bankruptcy, which offers an opportunity to renegotiate debt, leases, and other contracts, Owens said. “In this case, it may still be an uphill battle for Spirit because their business is suffering from lower airfares and higher labor costs than they anticipated,” he said.\nSheryl Estradasheryl.estrada@fortune.com\nThe following sections of CFO Daily were curated by Greg McKenna.\nThis story was originally featured on Fortune.com","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2484928298"}