Spirit Aviation (FLYYQ) stock underwent a massive rally on Tuesday alongside reports that the struggling airline company is seeking financial help from the U.S. government. According to the latest reports, Spirit Airlines’ parent company has floated the idea of offering an equity stake to the U.S. government to stave off a potential liquidation of its operations.
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The latest reports claim that Spirit Aviation could halt operations in a matter of days without help from the U.S. government. This could cause major problems for the country, as one of the nation’s airline operators would have to cancel flights. Spirit Aviation reportedly hopes that the government will step in to provide it with funds much in the same way that the government did with Intel (INTC) last year.
According to insiders, one of the major factors that has pushed Spirit Aviation toward government help is jet fuel prices. These prices have increased dramatically due to the war between the U.S. and Iran. This has resulted in repeated closings of the Strait of Hormuz, which is a trade route that roughly one-fifth of the world’s oil travels through. While President Donald Trump has promised to end the conflict soon and expects fuel prices to drop, it may not happen in time to save Spirit Aviation.
Spirit Aviation Stock Movement Today
Spirit Aviation stock was up 85.19% on Tuesday, extending a 140% rally year-to-date. However, traders will note that the stock has fallen 96.77% over the past 12 months.
With today’s news came heavy trading of FLYYQ stock, as more than 1.31 million shares changed hands. For comparison, the company’s three-month average daily trading volume is about 272,000 shares.
Is Spirit Aviation Stock a Buy, Sell, or Hold?
Turning to Wall Street, traditional analyst coverage of Spirit Aviation is lacking. Instead, traders can check out the TipRanks technical analysis tool for additional insight into the company. The Overall Consensus for FLYYQ stock today is Buy, based on two Bearish, six Neutral, and 12 Bullish indicators.
