Why Shares of Spirit Airlines Are Falling Today
Shares of Spirit Airlines (NYSE: SAVE) fell 21% at the open on Monday, and were down 11% at noon, after the discount airline adopted a so-called poison pill to ward off unsolicited takeover interest. Airline shares have been beaten down by the COVID-19 pandemic, and Spirit's board is trying to ensure that it remains in control of the company's future.
Spirit Airlines has joined the rush by airlines to bring down capacity and freeze capital expenditures as demand for travel has plunged.
Spirit is a small player relative to Delta Air Lines, Southwest Airlines, or American Airlines Group, and its debt load is about four times EBITDA, making it among the most vulnerable carriers. And its stock has been among the hardest hit, down nearly 70% year to date.
Source Fool.com
