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While I hate this company's pricing strategy, apparently many passengers do not. With Southwest having moved from discount to mainstream price levels, there may be market opportunity.
Overvalued unless they can keep up their growth rates for still some years, and I don't think they can. Cheap airlines that charge extra for every little service aren't exactly a new trick anymore, so it won't be getting easier to deceive the passengers and to keep up with the growing competition that tries to pull off the same stunt.
Upgrades for pretty much the whole Airline Industry! Have you seen the airports lately
Spirit may be great at managing costs and keeping margins inflated, but the public perception of the company will catch up with it. Just type "Spirit Airlines is..." into google and look at all the fun adjectives used. If I were to invest in the company one important aspect for me is the product. Spirit may offer deep discount travel but the product that customers receive is very apparently poor. I save my money to invest in companies with the best management, deepest moats and highest quality products, and it seems spirit is only good at slashing services and costs, not the makings of a long term winner in my opinion.
S&P 5 star,46.00
Cheap prices alongside good service in a rebounding industry
A low cost Airline Carrier that is seeming to prove everyone wrong. They continue to expand steadily & give the customer what they want. Choices to pay the ultimate low cost if desired. If they expand their Fleet and add more direct flights to major hubs, watch out. This is a booming industry to be in right now.
The mania will continue in q1, and q2...2H so mucho bueno.it will be seen that the economy is not as strong as we felt..the mkt. Will correct to a beta neutral no., will become a stock puckers mkt... Love it..
Spirit has the lowest cost structure in the industry, and its upgauging initiatives will only increase its lead over competitors. There is plenty of demand in the U.S. for cheap flights, and Spirit is poised to benefit from that untapped demand.
An airline company that keeps raising revenue every quater. This is a company that is flying high and going even higher.
Magic Formula 11-29-12
Company stay,wants don't match customer experience. Slammed in social media and ratings. Horrible customer service, delays and worse. They may protect their margins right in to brand oblivion.
This is a low-cost carrier with rock-bottom fares and solid financials. Though the fees are unpopular, they bring in a lot of revenue.
Spirit Airlines has a business model that works because it allows customers the option to choose a fare tailored to them. People will always complain about paying for everything but my advice to them is get used to it. Many people have been out of work for so long that it is time that people pay and do their fair share in bringing them back to work. Ticket prices today are down 800% from 1990 so if people complain about bag fees they should rethink whether they want to pay $120 or $1200 more for the ticket. I feel good about Spirit and Allegiant Airlines. The airlines which may suffer great financial losses are Southwest and Delta. Both those airlines have too high of cost due to merger expense and contracts which are costly at a time when fuel prices are at an all time high. American airlines and United have struggling times ahead. Regional airlines like Pinnacle, Comair, ASA,Skywest and Republic will phase out and will force legacy carriers to cut that type of equipment out of the plan. I called Pinnacle's bankruptcy over 2 years ago before a new CEO Sean Menke was installed. It was clear to me that this meant all regional's were at the beginning of extinction. It just started with one regional and will catch up to all of them. I only hope that those pilots and flight attendants see this opportunity to find a home at a legacy carrier soon. Now is the time to make a change in the industry and strike while the iron is hot.
they are absolutely focused on having the lowest costs, to the point that it became a religion. There is no way you can outcompete them.
Based on expected forward earnings of $40m, with only 15.6m shares issued at a current per share price of about 11.50, SAVE has a forward P/E X of around 4.5. Competitors in the bargain space such as LUV and JBLU are trading at multiples 4-5 times higher. Now, the theory that SAVE is going to be undervalued all goes out the window if they have a secondary offering and dilute the earnings over more shares.
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