Spirit Air unconcerned about FSC push into leisure markets

Premium Analysis

Spirit Airlines is unfazed by the rush of full service airlines into leisure markets after the COVID-19 pandemic wiped out business travel, reasoning that its low cost structure remains a formidable shield against changing dynamics in the US market. 

In the short term, Spirit is encouraged by some widening of booking curves; however, those booking windows are still short compared with historical levels. 

The airline joins operators worldwide in working to build up liquidity and stave off cash burn, but is stopping short of declaring a target to reach a zero cash burn on a consistent basis. To achieve that aim, Spirit has concluded that it will need to increase operations, which can occur one of two ways. 

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