While Spirit Airlines (NASDAQ:SAVE) had prepared investors for disappointment with a mid-October investor update, shares of the budget airline plummeted even further after its earnings release last week.
What: 2015 was a terrible year for Spirit Airlines (NASDAQ:SAVE) investors. Spirit shares lost up to 60% of their value during the year, after price-matching activity from legacy carriers like American Airlines (NASDAQ:AAL) caused unit revenue to plummet.
Investors have lost confidence in Spirit's profit growth trajectory as its unit revenue has plummeted during 2015. However, Spirit Airlines bears appear to be missing one key factor that bodes well for the company's performance in 2016 and beyond ...
Airline stocks have been good to investors in recent years, and none more so than Spirit Airlines (NASDAQ:SAVE). This high flyer went public at $12/share in 2011, only to soar sevenfold in the next few years, peaking at $85 in late 2014.