Fitch views Spirit Airlines negatively

Fitch Ratings said it revised the outlook for Spirit Airlines, Inc. to negative from stable and affirmed Spirit's long-term issuer default rating at B+. Fitch also affirmed Spirit IP Cayman Ltd.'s and Spirit Loyalty Cayman Ltd.'s senior secured debt at BB+/RR1.

“The outlook revision incorporates Fitch's view that various headwinds may drive profitability and leverage metrics to remain outside of Fitch's negative sensitivities through YE 2024 or longer. Aircraft availability and air traffic control issues are having a greater impact on Spirit relative to some competitors, limiting the company's post-pandemic margin recovery. Longer-term, Fitch believes that Spirit's low-cost structure and its ability to stimulate demand will drive margins closer to pre-pandemic levels,” the agency said in a press release.

Fitch concurrently affirmed the 2017-1 class AA and class A certificates and the 2015-1 class A certificates and Spirit's 2015-1 and 2017-1 class B certificates at BBB-.

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