Spirit Airlines Is Crashing: Is It Still a Buy for Long-Term Investors?
After a strong run in its first several years as a public company, Spirit Airlines (NASDAQ: SAVE) has disappointed investors again and again since 2015. Yet while profitability has been receding, the carrier continued to exceed its long-term goal of generating "mid-teens or higher operating margins" -- until now.
Unfortunately, a damaging dispute with its pilots and an industry price war sparked by United Continental (NYSE: UAL) have undermined Spirit Airlines' margin performance recently. Let's take a look at what this means for the company's long-term prospects.
For most of the past three years, Spirit Airlines has faced severe unit revenue pressure, as rivals have become more aggressive about matching its low fares. Nevertheless, its adjusted operating margin peaked in 2015 at 23.7%, thanks to the benefit of lower fuel prices.
Source: Fool.com
United Continental Holdings Aktie
Die United Continental Holdings Aktie steht gut da: Deutlich mehr Buy- als Sell-Einschätzungen in der Community.
Die Community erwartet für United Continental Holdings ein Kursziel von 65 €, was eine Steigerung von über 20% gegenüber 46.43 € bedeuten würde.
