Qotsaautopilot

I don’t take these as good signs. We aren’t AA and I’m not a financial wiz but I didn’t expect us to be taking on more debt and issuing more stock as things seem to be on the upswing. We are already heavily levered.

https://m.marketscreener.com/quote/s...ntent=20210427

Tranquility

Gotta pay for planes somehow.... I foresee C2018 lasting till....2030?

EDIT: after rereading the article, it looks like some of the debt issued to payoff other debt at a different interest rate. So, some reshuffling of deck chairs?

Qotsaautopilot

Some. Net increase though.

I think we all knew C2018 would be stalled out as long as they possibly could. Par

Tranquility

As long as we can service the debt, it shouldn’t be a problem. Watching Squawk on the Street right now and just heard that Goldman is calling oil going up to $80. That’ll definitely erode our margins if it happens....

Qotsaautopilot

Agreed. Just like the US government debt doesn’t have to be paid off at a corporation as long as you can service it and roll it over. Unlike you and me that have retirement and death in the future.

Just don’t want the debt to be crippling and Spirit isn’t exactly on the healthy debt side IMO and getting more is not the news I wanted to see.

CincoDeMayo

Kind of tough to tell if the net benefit of the squeeze oil prices places on our competition is greater than the affect on ours. The rumor has always been Spirit is at an advantage vs legacy competition at oil at that range.

Judge Smails

Definitely huh? This company has posted some of its best margins when oil was pushing $100/barrel. Cheaper oil has actually hurt us.

Excargodog

Taking on low interest debt to pay off high interest debt is usually a good idea. And three years ago there was a long waiting list to get any A320 family aircraft and the demand for them - particularly with the MAX grounded - had driven up prices:

https://www.ft.com/content/a495bc06-...9-6917dce3dc62

Today, with ordering airlines having gone bankrupt or deferring those buys, Airbus is anxious to get the cancelled and deferred aircraft off the lot and can get you one as quickly as they can repaint it - often at at the lowest prices they have ever sold them. And leasing companies that reclaimed aircraft from bankrupt carriers are anxious to part with late model low time aircraft at even lower prices.

Look at the growth plans. Even the aircraft they have managed to move forward from later scheduled deliveries won’t be enough to grow 15-17% per year.



This is the time to be bold, if ever there was one.

Tranquility

If we’re able to pass the cost on to the passengers, then yes, we are at an advantage as we have more seats per airframe to disperse the added cost. If we aren’t able to pass it on, we’ll then you know....

Tranquility

See above....