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Spirit Airlines (SAVE) has rebounded for almost 21% since May 18, 2020 as travel demand is expected to recover in June. The business model of low cost carrier are expected to fully benefit from this recovery. But will Spirit Airlines (SAVE) rebound more?

Besides the fundamental, underwriting for new capital should also take into consideration. On May 06, 2020, Spirit Airlines announces offerings of common stock and convertible senior notes Due 2025. The offering price for common stock is $10. If spirit airlines move higher than $10, it will make it offering more attractive. This factor may create a momentum for the stock to break $10 in near term.

Once the underwriting is completed in June, Spirit Airlines will have a better financial position in long run. And the main uncertainly of the stock will be eliminated. Together with the travel demand recovery, Spirit Airlines may push higher in June.

Reference:

https://www.barrons.com/articles/airline-stocks-climb-on-signs-of-a-return-to-air-travel-51589822658?siteid=yhoof2&yptr=yahoo

https://finance.yahoo.com/news/spirit-airlines-announces-offerings-common-203442824.html

https://www.globenewswire.com/news-release/2020/05/08/2030103/0/en/Spirit-Airlines-Announces-Pricing-of-Offerings-of-Common-Stock-and-4-75-Convertible-Senior-Notes-Due-2025.html

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