Fitch revises Spirit Airlines outlook to negative; affirms ratings

Fitch Ratings has revised the rating outlook for Spirit Airlines to negative from stable and affirmed Spirit’s Long-term Issuer Default Rating at ‘B+’. Fitch has also affirmed Spirit IP Cayman’s and Spirit Loyalty Cayman’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 opines the rating agency. Longer-term, Fitch believes that Spirit’s low-cost