Spirit Airlines: Back On The Radar
Spirit Airlines (SAVE) has surged 20% over the last couple of days after the airline boosted Q4 RASM to ~11% growth. The airline had originally forecast 6% growth after a period of declining metrics.
The airline has amazingly hit new highs following my April article when Spirit Airlines was down in the dumps. Analysts are boosting 2019 EPS estimates above $5 per share. The stock likely rallies towards $70 on this bullish news.
Investors should turn more cautious at these levels. The airline has a tendancy to dramatically boost capacity as yields start to improve. Absent any capacity boost, my view could stay bullish on these gains.
Posted April 27