Debt And Credit RatingThe announcement of the debt raise was met with a negative reaction as shares fell approximately 21%, and both S&P and Moody's downgraded the company's credit rating to B-.
Financial PerformanceShares traded down significantly after the results given the 4Q guidance disappointment and ongoing investor concerns about whether the airline will be able to start bending the cost curve down in the years beyond 2025.
Operational ChallengesThere is concern that efforts on the cost side could result in a diminished soft product needed to get passengers to pay a premium, making it difficult to achieve both goals of justifying a revenue premium from customers while also reducing costs.