IB Net Payout Yields Model

Spirit Airlines: Overlook Recent Hiccups


  • Spirit Airlines cut Q3'21 guidance after a period of strong rebounds from the covid lows in 2020.
  • The airline had to cut nearly 3,000 flights in early August due to internal issues.
  • The stock is cheap back closer to $20 with a path to $4+ EPS in the next few years due to capacity growth.
  • This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »
The Delta variant has slightly dented travel demand, but the airline stocks have fallen up to 40% from the recent highs. Spirit Airlines (SAVE) hasn't helped their case with systems troubles causing the cancellation of thousands of flights. My investment thesis remains very Bullish on this stock following this dip as air travel demand remains on track for a full recovery.

Read the full article on Seeking Alpha. 

Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

Update - August 29

TSA traffic has definitely dipped, but Sat. traffic was still 77% of 2019 levels despite Delta variant fears and Hurricane Ida. If this is the worst traffic gets, Spirit Airlines is an easy buy down in the low-$20s.

8/28/2021 1,511,294, 77.3%

8/21/2021 1,685,462, 82.6%

8/14/2021 1,811,767, 83.4%

Finviz Chart


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