Who Owns Spirit Airlines In The United States: Spirit Airlines, Inc. went public in 2011 and was listed on the NASDAQ under the ticker symbol SAVE. As of February 26th, 2024, the company’s value has reached 703.94 million. With its status as a publicly traded entity, ownership of the airline is distributed among various entities and parties. Let’s explore the ownership structure of the airline.
Who Owns Spirit Airlines In The United States
The Vanguard Group, an investment company, holds the majority ownership of Spirit Airlines, representing approximately 10% of the total ownership.
Spirit is currently grappling with a severe financial crisis, experiencing a net operating loss of $554 million in 2022 along with a substantial decline in market value.
Spirit Airlines, burdened with a debt of $1.1 billion, faces the possibility of bankruptcy due to the failed merger with JetBlue. This blocked merger, valued at $3.8 billion, has put Spirit Airlines in a precarious financial situation.
Share Breakdown
Based on data from Simply Wallstreet, the majority of the airline is owned by institutions, accounting for 60.1% (65,755,769 shares), while the general public holds 39.2% (42,952,682 shares). Individual investors possess a mere 0.678% (742,184 shares), and private companies have a minimal ownership of 0.025% (27,364 shares).
The airline’s top ten shareholders are listed below:
| Ownership % | Name | Shares |
|---|---|---|
| 9.52% | The Vanguard Group, Inc. | 10,418,903 |
| 7.69% | BlackRock, Inc. | 8,421,544 |
| 3.09% | Nomura Holdings Inc, Securities & Investment Arm | 3,386,693 |
| 2.87% | Dimensional Fund Advisors LP | 3,143,384 |
| 2.38% | State Street Global Advisors, Inc. | 2,600,650 |
| 2.28% | Diameter Capital Partners LP | 2,500,000 |
| 2.14% | Geode Capital Management, LLC | 2,338,194 |
| 1.67% | Ancient Art, L.P. | 1,825,295 |
| 1.56% | Millennium Management LLC | 1,704,838 |
| 1.43% | Susquehanna International Group, LLP, Asset Management Arm | 1,561,165 |
| 1.20% | Calamos Asset Management, Inc. | 1,310,734 |
According to the data, The Vanguard Group, Inc. holds the majority of shares in Spirit Airlines, with a stake of almost 10%. BlackRock, Inc. is the second largest shareholder, owning close to 8% of the company.
About Spirit Airlines
Established in 1983 as Charter One Airlines, Spirit Airlines has come a long way. Over the past forty years, it has steadily grown to become the sixth largest airline in the United States. With a staggering 44.1 million passengers carried, Spirit Airlines has firmly established itself as a prominent player in the aviation sector.
Despite its current struggles, Spirit Airlines is encountering a crisis and finding it challenging to maintain its independence as an airline. The company reported a net operating loss of $554 million in 2022. Moreover, within just one year, the airline’s market capitalisation plummeted from $1.78 billion to 703.94 million, reflecting a significant decline of -60.66%. In stark contrast, Delta Air Lines, the leading airline in terms of revenue, total assets, market capitalisation, and brand value, is valued at $26.83 billion, which is 37 times greater than Spirit Airlines.
The merger of JetBlue and Spirit Airlines, valued at $3.8 billion, aims to restore profitability to the airline. However, the US Department of Justice (DOJ) has filed a lawsuit opposing the merger, claiming it would result in unfair competition and negatively affect consumers.
Earlier this year, the merger was halted by a District Court Judge at the District Court for the District of Massachusetts, who ruled that it contravened US anti-trust law. Subsequently, CNBC reported that the two airlines filed an appeal against the court’s decision.
As reported by Fortune, the airline presently carries a debt of $1.1 billion, and the collaboration with JetBlue served as a crucial lifeline for the struggling airline. With the merger being thwarted, numerous experts express concerns that the airline may be on the verge of bankruptcy.
About The Author
