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Spirit Airlines Is Getting Back on Track


Leisure travel demand has come roaring back in the U.S. over the past six months. That helped most major airlines achieve strong sequential improvement in their earnings results last quarter.

Among U.S. airlines, Spirit Airlines (NYSE: SAVE) has a particularly strong focus on leisure travel. Not surprisingly, the budget airline saw a huge turnaround in its business in the second quarter, positioning it for a return to profitability starting this quarter.

In the first quarter, Spirit Airlines posted a massive $308 million adjusted pre-tax loss on $461 million of revenue. Adjusted earnings before interest, taxes, depreciation, and amortization, or EBITDA, was negative to the tune of $200 million. However, at the time of the Q1 earnings report in late April, management projected that Spirit would get close to breakeven EBITDA in the second quarter, with an adjusted EBITDA margin between negative 5% and 0%.

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Source Fool.com

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