When building an investment portfolio, people often look towards different stocks in order to diversify the portfolio. One great example of this is Spirit stock. It make reference to the Spirits Airlines stock, its aviation services across the Americas.
After coming back from a huge financial blow in 2024, this company is now focusing on rebuilding its position as a leading airline service.
If the company improves, its stock price will go up as well. In this article, I am going to discuss what Spirit stock actually is. Besides that, I’ll cover its Spirits Airlines stock price, pros, cons, and some cautious points for investors.
What is Spirit Stock?
Spirit stock refers to the stock of Spirit Airlines, which is a flight company operating in the United States. The company’s main focus is to rebuild its services and focus on providing some of the best quality travel experiences in:
- America
- Latin America
- The Caribbean
What’s important to know about this company is that it faced a huge financial setback in 2024. There were different factors involved in this, but the major one was a failed merger with JetBlue Airways. This failure and a huge debt caused the company to declare bankruptcy.
However, it has come back from bankruptcy recently and has covered a debt of around $795 million by converting it into equity. Besides that, the company was able to secure $350 million in equity investment from its existing customers.
Now, the Spirit stock is working with the ticker SAVEQ and is currently traded over-the-counter (OTC).
Current Spirit Stock Price:
The current of the Spirit stock price is at $0.465. This stock is showing positive signals, and experts have predicted a rise in its price. According to analysts, it is going to have a one-year price of $1.71.
Pros and Cons of Spirit Stock for Investors:
Investing in the Spirit stock can be both a good and a bad idea. The following pros and cons explain it well:
Pros of Spirit Stock for Investors
The pros of the Spirit stock for investors are given below in details.
1. Low Current Price:
As for now, SAVEQ has a low current price. It means you can own a good amount of shares of the company by investing in it. It’s a huge opportunity for people who have a high risk tolerance.
That is because they can purchase stocks of Spirit at a cheap price and then make a profit once the company stabilizes. Even if the company doesn’t improve, the high-risk areas are generally prepared and have a backup.
2. Potential Recovery After Bankruptcy:
Another positive aspect of investing in Spirit stock is that the company has recently come out of bankruptcy. Its leadership has shown great potential by turning the debt into ownership of the company.
It keeps the company’s balance sheet pretty clean and gives it a fresh start. So, the company can now focus on rebuilding, which means you’ll have a huge chance of making a profit in the future.
3. Market Demand:
The market demand of the Spirit company is going to have a huge impact on its stock prices. It is known for offering budget travel options in different regions, and people may be interested in using its services.
Since the company is rebuilding, it will focus on providing as best services it can. It will result in growth, meaning the stock prices will pump as well.
4. Relisting On NYSE:
The Spirit stock is expected to get relisted on the New York Stock Exchange. It will supposedly be listed under the ticker FLYY.
Being listed on this stock exchange will offer the company huge visibility in the global market. It will directly affect the stock’s credibility, increasing its pricing and ultimately your profit.
Cons of Spirit Stock for Investors
The drawbacks of investing in Spirit stock are outlined below:
1. Bad Financial History:
One of the biggest negative factors of investing in the Spirits Airlines stock is its bad financial history. As I mentioned earlier, the company went through a phase that was a complete disaster financially. The failed merger and debt led to the company’s bankruptcy.
Now, there’s no guarantee that this won’t be happening again. There will always be a chance of poor financial management by the company that can lead to bankruptcy once again.
2. Fierce Competition:
Although the Spirits Airlines is now rebuilding and trying to focus on providing good services, it still has to face a lot of competition in the market. There are different airline companies that are competitors of Spirit, including Southwest Airlines and Frontier Airlines.
Competition means that Spirit has to work a lot in order to succeed in the market. If anything goes wrong, the stock price will go down, causing you a loss.
3. Economic Sensitivity:
The factor of economic sensitivity can also have a negative impact on the stock investment decision in Spirit stock.
Airlines are usually vulnerable to different factors such as fuel prices and even global events, which can then impact the overall company’s performance. This means your investment could be in danger if the economy isn’t doing well.
What to Consider Before Investing?
Well, if you’ve decided to take the risk and invest in Spirit stock, there are some important consideration points that you should keep in mind. I’ve given their details below:
- The company’s fresh out of bankruptcy. Make sure your risk tolerance is high before investing.
- Analyze the company’s leadership and understand their future plan for growth.
- Although there’s market competition, a company can still grow by offering better services than others. So, it is also important to analyze the quality of services of Spirit to predict its future success.
- If the economy is currently bad, avoid investing in this stock.
- Make sure to have long-term goals for investment if you’re planning to invest in an uncertain stock like Spirit stock.
Final Verdicts
Spirit stock is the stock of the Spirit Airlines company. The current pricing of the stock is pretty affordable, but it has a very uncertain future. That is because the company has recently faced a huge financial blow, which has even caused its bankruptcy.
It is important to keep in mind both the pros and cons of investing in this stock so that you don’t face any unexpected losses. Always understand your risk tolerance and do complete due diligence before making an investment.
People Also Ask:
1. Is Spirit Airlines Stock a Good Buy?
Buying Spirit Airlines stock can be a good choice. The stock is currently available at a low price. The analysts have predicted that the average one-year price will be pretty decent for profit.
2. What Happened to Spirit Airlines Stock?
The Spirit Airlines stock has faced a huge fluctuation recently. It mainly happened because the company went bankrupt last year.
3. Who is The CEO Of Spirit?
The current CEO of Spirit is Dave Davis. He took over the role of CEO on April 21, 2025.
4. How Is Spirit Making Money?
Spirit mainly makes money via its aviation services. It offers affordable flights for people and makes a profit from it.
