- GRIT
- Posts
- Spirit's Flight Plan Pivot
Good Morning!
Happy Tuesday! Hope you enjoyed the solar eclipse!
👉 Spirit has big news
👉 Biden announces new plan
👉Bullard makes prediction
SPIRIT: Delays and Layoffs
On Monday, Spirit Airlines announced plans to delay receiving new Airbus aircrafts and lay off about 260 pilots to save money. The company will push back the delivery of Airbus planes originally set for 2025 and 2026 to 2030 and 2031, except for a few leased planes and deliveries planned for 2027 to 2029. This move is expected to help Spirit save around $340 million over two years.
Source: Airways Magazine
Spirit aims to adjust its business in response to competitive changes. The airline is trying to improve its financial situation after facing challenges like the grounding of planes due to an engine recall. Spirit also said it would get payments for its grounded planes until the end of 2024, which could boost its cash by $150 to $200 million. Pilot layoffs will start in September, but flight attendants won't be affected. The airline is also closing its base in Atlantic City, New Jersey.
🎯 GRIT TAKE: In terms of cash flow…upgrade to VIP now to read the full GRIT Take!
BIDEN: New Student Loan Plan
President Joe Biden just announced a new student debt forgiveness plan which aims to overcome legal hurdles that stopped his first attempt. This time, the plan is more focused, aiming to help those in financial need. A notable part of the plan could help up to 25 million Americans by erasing excessive interest on student loans. High interest rates, sometimes over 8%, make it hard for many borrowers to pay down their debt. The Biden administration says more than 25 million people owe more on their federal student loans than they originally borrowed.
Source: VOX
Under the proposed plan, borrowers could see up to $20,000 of their unpaid interest forgiven, with no income restrictions. Those earning up to $120,000 individually, or $240,000 as a married couple, might get all their accumulated interest wiped out if they are in income-driven repayment plans, without needing to apply for this relief.
BULLARD: Three Cuts
James Bullard, former St. Louis Federal Reserve head, predicts the Fed will cut interest rates three times this year as inflation approaches their target and the economy remains solid. This outlook aligns with the Fed's stance but diverges from market predictions, which lean towards expecting only two cuts after a strong jobs report.
Source: CNBC
Despite his new academic role, Bullard's views continue to be influential. He noted the economy might achieve a "soft landing," slowing down just enough to control inflation without triggering a downturn.
Headlines You Need To Know: 🎙
State Street sees interest rate cut in June
BlackStone nears buyout of skin-care company
Google announces new custom chips
3G Capital exits Kraft investment
Tesla settles major lawsuit
Chart of the Day
📊 Median Annual Income
Source: CNBC
GRIT Meme of the Day 😂
Tag GRIT Capital on social media for a chance to be featured in our meme or Tweet of the day in our GRIT daily newsletter! 👇
Do you have feedback to share? Click HERE.
The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.
Grit is a publisher of financial information, not an investment advisor. Grit does not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient. Grit does not guarantee the accuracy or completeness of the information provided in this page. All statements and expressions herein are the sole opinion of the author or paid advertiser.
THE INFORMATION CONTAINED ON THIS WEBSITE IS NOT AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE, AND DOES NOT PURPORT TO BE AND DOES NOT EXPRESS ANY OPINION AS TO THE PRICE AT WHICH THE SECURITIES OF ANY COMPANY MAY TRADE AT ANY TIME. THE INFORMATION AND OPINIONS PROVIDED HEREIN SHOULD NOT BE TAKEN AS SPECIFIC ADVICE ON THE MERITS OF ANY INVESTMENT DECISION. INVESTORS SHOULD MAKE THEIR OWN INVESTIGATION AND DECISIONS REGARDING THE PROSPECTS OF ANY COMPANY DISCUSSED HEREIN BASED ON SUCH INVESTORS’ OWN REVIEW OF PUBLICLY AVAILABLE INFORMATION AND SHOULD NOT RELY ON THE INFORMATION CONTAINED HEREIN. INVESTORS SHOULD OBTAIN INDIVIDUAL INVESTMENT ADVICE BASED ON THEIR OWN CIRCUMSTANCES BEFORE MAKING AN INVESTMENT DECISION
No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned.
The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.
Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable. They are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur. Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities discussed herein. The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and Grit undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material.
Grit does not accept any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein.
By using the Site or any related social media account, you are indicating your consent and agreement to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.
Please read: Terms of Use, Privacy Policy, Disclosure Policy, State Disclosure Policy, and Disclaimer Policy
If you have any questions please contact us at  info@gritcap.io
Join the conversation