To be completely blunt, intrepid investors don’t need much excuse to at least have the desire to short Spirit Airlines (SAVE). Obviously, the biggest concern stems from the termination of the merger agreement with JetBlue Airways (JBLU). Amid a competitive environment following a devastating disruption from the COVID-19 crisis, SAVE stock is in ugly shape.
Making matters worse, the recent data gives no impression that the discount airliner is anywhere close to making a recovery. Let’s look briefly at the company’s latest earnings results for the second quarter. On a per-share basis, Spirit incurred a loss of $1.76. When adjusted for non-recurring costs, this metric came down to $1.44 in the red. Neither result met Wall Street’s target.
