Back to top

Image: Bigstock

Shares of Spirit Airlines (SAVE) Tumble After Flight Cancellations, Airport Chaos

Read MoreHide Full Article

On Tuesday, shares of discount airliner Spirit Airlines (SAVE - Free Report) are tumbling, down about 3.8% in late-morning trading after the company had to abruptly cancel nine flights Monday evening, with passenger frustration culminating in fights with Spirit employees at Fort Lauderdale-Hollywood International Airport in Florida.

In the latest incident of airline chaos, multiple videos were posted online showing altercations that had broken out between travelers and airline employees, with authorities doing their best to restore order. While some passengers were pulled aside from the crowd, others were forcibly taken to the ground or placed in handcuffs.

 

But problems have certainly been building for Spirit, as the airline had to cancel almost 300 flights over the past seven days due to its lawsuit against its own pilot union. The airline alleges “an unlawful job action by Spirit pilots,” and said that the Air Line Pilots Association (APLA) and some of its members are “purposely and unlawfully disrupting [its] operations.”

CNN notes that just on Sunday, the airline had to cancel 81 flights, “comprising 17% of the carrier's scheduled flights for the day.” And, Spirit estimates roughly 20,000 customers have been affected by the lawsuit.

 

“The Spirit pilots’ concerted refusal to accept junior assignments or pick up open time flying has dramatically impacted Spirit’s operations leading to cancellations throughout its system, and most particularly for flights departing from Fort Lauderdale, Chicago-O’Hare, Detroit, and Las Vegas,” said the airline.

ALPA has denied the allegations, and said that Spirit’s suit is “unwarranted and counterproductive legal action.”

Spirit is the latest airline company to be embroiled in a public relations disaster since United’s (UAL - Free Report) passenger-dragging incident in Chicago on April 9. Since then, customer service on flights have been in the spotlight, with many events captured on video and making headlines: the death of a beloved giant rabbit on a United flight; an American Airline (AAL - Free Report) flight attendant allegedly yanking a stroller from a mother; and a family being kicked off a Delta (DAL - Free Report) flight over a dispute about a toddler’s ticketed seat.

Zacks' 2017 IPO Watch List

Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Could you imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.

One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>