Why Spirit Airlines Stock Is Soaring Today

Spirit Airlines (NYSE: SAVE) has secured more time to work out its debt burden, easing near-term bankruptcy fears. The stock took off on the news, trading up as much as 73% on Monday morning and up 58% as of 1 p.m. ET.

Spirit has been flying through significant headwinds this year. In January, the airline's planned sale to JetBlue Airways was blocked on competition concerns. And Spirit's efforts to fly solo have been hindered by an RTX engine issue that has grounded part of its fleet.

The airline had an Oct. 21 deadline to refinance or extend bonds or faced issues with its credit card processing agreement. If the card deal is halted Spirit would struggle to sell tickets, likely forcing a bankruptcy filing.

Source Fool.com