Why Spirit Airlines is the Fairest of Them All
Spirit Airlines (NASDAQ: SAVE ), the ugly duckling among airlines, and a punchline on late night comedy , is suddenly the belle of the industry ball. Spirit is the only airline stock that is up for 2022, recently posting a gain of 9%. Every other airline has followed the market lower. Spirit is attractive because rival Frontier Airlines (NASDAQ: ULCC ) offered to buy it in February for stock then worth $3.3 billion . JetBlue (NASDAQ: JBLU ) topped that with an all-cash offer of $3.6 billion. That offer has since sent JetBlue stock down more than 40%. It’s all playing out against a backdrop of disruptions and cancellations that have consumers complaining and investors fleeing the sector . Ticker Company Price SAVE Spirit Airlines $22.75 Why Buy SAVE Stock? Beyond its route system and valuable landing “slots,” Spirit is seen as a potential turnaround story . It’s worthwhile because it’s worth less, currently valued at 25% less than its annual revenue. Southwest Airlines (NYSE: LUV ), which also began as a budget carrier, is now worth $21 billion on revenue of $16 billion.
Why Spirit Airlines is the Fairest of Them All
Spirit Airlines (NASDAQ: SAVE ), the ugly duckling among airlines, and a punchline on late night comedy , is suddenly the belle of the industry ball. Spirit is the only airline stock that is up for 2022, recently posting a gain of 9%. Every other airline has followed the market lower. Spirit is attractive because rival Frontier Airlines (NASDAQ: ULCC ) offered to buy it in February for stock then worth $3.3 billion . JetBlue (NASDAQ: JBLU ) topped that with an all-cash offer of $3.6 billion. That offer has since sent JetBlue stock down more than 40%. It’s all playing out against a backdrop of disruptions and cancellations that have consumers complaining and investors fleeing the sector . Ticker Company Price SAVE Spirit Airlines $22.75 Why Buy SAVE Stock? Beyond its route system and valuable landing “slots,” Spirit is seen as a potential turnaround story . It’s worthwhile because it’s worth less, currently valued at 25% less than its annual revenue. Southwest Airlines (NYSE: LUV ), which also began as a budget carrier, is now worth $21 billion on revenue of $16 billion.