The coronavirus pandemic brought about a very tough and crucial time for so many companies. Many businesses saw a downfall during this time. This crisis greatly affected the travel sector. With tourism and travel coming to a standstill when the lucrative season was going on, the airline companies went through losses. The same has happened with Spirit Airlines Incorporated (NYSE: SAVE).
The travel reduced a lot during the recent months because of complete lockdown and curfew at numerous places worldwide. The holiday season was covered during this time and hence the airline companies could not earn much. However, as the situation is changing gradually, recovery is visible. This is evident as the stocks of Spirit Airlines have shown some growth lately.
There has been a significant improvement in revenue. The revenue in the second quarter was $138.5 million and now in the third quarter, it has come out to be $401.9 million. This is noteworthy. Although even this amount is quite low if we compare to the revenues generated in the previous year but the progress is considerable. These earnings have given better hopes to both the company and the investors also.
Let us see what the latest statistics of Spirit Airlines Incorporated (NYSE: SAVE) are:
- 52 Week Range: $7.01 – $47.50
- Average Volume: 9,277,101
- Market Capital: $1.716B
Do these improvements make Spirit Airlines Stock a buy now?
The company has started its journey towards progress at a decent speed. Therefore the investors cannot just expect the company to bring profits too quickly. This is because the third-quarter earnings were better than those of the second quarter but the company is still in loss when we compare the earnings to those of the last year. Hence, the proper progress will happen with time. Moreover, the course of the pandemic in the upcoming times will decide the fate of these companies. It is highly expected that things will completely go back to normal soon but the coronavirus cases are still rising.
People are worried about safety and mostly traveling only when it is required, therefore nothing can be surely said as to what will happen next. This company is however recovering at a better speed than its rival companies. This is good news for the investors but shareholders have to keep in mind that the time when their investment will fetch profits is still not very near. The reason for this is that the losses will be covered up first.
Therefore, an investment in this company is a game of profit if the investors are ready to wait for a longer time. The company is showing better and steady growth. The overall performance in this Covid-19 scenario is also better than other companies so definitely this firm has an upper hand. The investors can think of long-term investments. As the travel will restore to normal, the company will also earn higher and generate profits.