Spirit Airlines (NYSE:SAVE) on Friday raised its financial forecast for the fourth quarter of 2023, sending shares soaring more than 30% after a rout earlier this week that followed a judge’s ruling that blocks JetBlue Airways (NASDAQ:JBLU) from buying the budget carrier.
Spirit said in a filing that it expects revenue to come in at about $1.3 billion, at the high end of its earlier forecast, thanks to strong bookings at the end of the year. It estimated adjusted negative margins of 12% to 13%, which represents an improvement from a previous forecast for as much as a 19% negative margin for the last three months of the year.
The airline also credited lower fuel costs and other expenses in its improved estimates.
Prior to Friday’s premarket surge, Spirit shares had shed 62% and lost than $1 billion in market capitalization over the last trading week as the ruling raised questions about the airline’s future. Some analysts said the carrier could be on track to file for bankruptcy protection.
The two airlines said they disagreed with the decision and were assessing next steps, which could include an appeal.
Spirit confirmed on Friday that it is weighing options to refinance more than $1 billion in debt that matures in 2025. It previously sold and leased back some of its aircraft. The airline said in the filing that it had $1.3 billion of liquidity at the end of 2023.
SAVE gained 99 cents, or 17.4%, first thing Friday, while JBLU lost 20 cents, or 4%, to $4.84.