Why Shares of Spirit Airlines Are Falling Today

Shares of Spirit Airlines (NYSE: SAVE) were down 13% on Thursday morning after the discount airline posted a first-quarter loss and announced it was raising fresh liquidity via a stock and convertible bond offering. After markets closed Wednesday, Spirit reported a first-quarter loss of $0.86 per share on revenue of $771.1 million, falling short of the consensus estimate for a loss of $0.62 per share on sales of $810 million. Spirit also said it has commenced an underwritten public offering of 12 million shares as well as $150 million in convertible notes due in 2025, with the underwriters having the option to purchase up to 1.8 million additional shares and up to $22.5 million in additional convertible notes if demand for the offerings is strong.