“Exclusive: Spirit Airlines (NYSE: SAVE) Facing Layoffs Over Engine Troubles”
In a shocking turn of events, Spirit Airlines is experiencing engine troubles that are leading to the furloughing of 260 pilots starting on Sept. 1. The budget airline is not the only one facing issues with Pratt & Whitney PW1100G engines, as other airlines are also dealing with similar problems. As a result, Spirit Airlines is grounding many of its planes to address these issues and has also suspended the hiring of pilots and flight attendants.
The layoffs come after Spirit Airlines reported disappointing results for the second quarter, with adjusted EPS of -$1.44 and revenue of $1.28 billion. This is in contrast to Wall Street’s estimate of -$.141 and revenue of $1.28 billion. Spirit Airlines president and CEO, Ted Christie, attributed the poor performance to industry capacity increases and competitive pricing changes impacting revenue.
As a result of these developments, SAVE stock is down 1.5% as of Friday morning. Investors should stay tuned for more updates on the stock market, including news on Chevron (NYSE: CVX) and Fresh Vine Wine (NYSEMKT: VINE) stocks.
Analysis:
Spirit Airlines is facing layoffs due to engine troubles, leading to a negative impact on their financial performance. Investors should keep an eye on how these developments affect the company’s stock price and overall market trends. It is essential to stay informed about the latest news in the stock market to make well-informed investment decisions.