Spirit Airlines Sees AOG Credits To Be Issued By Pratt & Whitney Based On AOG Days In Q2 2024 Of $37M; For FT24 2024, Co Estimates AOG Credits To Be Issued By Pratt & Whitney Will Enhance Liquidity By ~$150M-$200M; Estimates $52M Will Be Recorded As Reduction In Cost Of Assets On Co's Condensed Consolidated Balance Sheet In Q2
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Spirit Airlines expects to receive AOG credits from Pratt & Whitney amounting to $37M in Q2 2024, enhancing liquidity by $150M-$200M for FY24. Additionally, $52M will be recorded as a reduction in cost of assets on the company's balance sheet in Q2.
July 16, 2024 | 8:31 pm
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NEUTRAL IMPACT
Pratt & Whitney, a subsidiary of Raytheon Technologies (RTX), will issue $37M in AOG credits to Spirit Airlines in Q2 2024, enhancing Spirit's liquidity by $150M-$200M for FY24.
While the issuance of AOG credits by Pratt & Whitney will benefit Spirit Airlines, the direct impact on Raytheon Technologies is less pronounced, resulting in a neutral short-term impact on RTX's stock price.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Spirit Airlines will receive $37M in AOG credits from Pratt & Whitney in Q2 2024, enhancing liquidity by $150M-$200M for FY24. This will also result in a $52M reduction in asset costs on the balance sheet.
The AOG credits will significantly enhance Spirit Airlines' liquidity and reduce asset costs, positively impacting the company's financial health and stock price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100