DANIA BEACH, Fla. - Spirit Airlines (NYSE: NYSE:SAVE) announced today that Brian McMenamy has been appointed as the Interim Chief Financial Officer, effective June 14, 2024.
McMenamy, currently serving as the Vice President and Controller for the airline, will succeed Scott Haralson, who is set to join a larger publicly traded company outside of the airline industry in the same role. Haralson's departure follows an eleven-year tenure with Spirit, during which he held the position of Executive Vice President and Chief Financial Officer.
Ted Christie, President and Chief Executive Officer of Spirit, expressed gratitude for Haralson's significant contributions to the company, noting his positive and lasting impact on the business. The company plans to conduct a comprehensive search for a new CFO with the help of a leading executive search firm.
McMenamy brings nearly four decades of experience in corporate finance to his new role as interim CFO. Before joining Spirit in 2017, he spent 33 years at American Airlines (NASDAQ:AAL) in various finance roles, including Vice President of Finance and Controller. McMenamy holds a Bachelor of Science in Financial Economics and an MBA from Northwestern (NASDAQ:NWE) University's J.L. Kellogg (NYSE:K) Graduate School of Management. He is also a Certified Public Accountant.
The leadership transition occurs as Spirit continues discussions with bondholders, which are progressing as planned. The airline is executing initiatives related to its go-forward plan, anticipating over $75 million in cost savings for 2024, with annualized savings estimated to exceed $100 million.
Spirit Airlines, known for its unbundled fares and customizable travel options, operates one of the youngest and most fuel-efficient fleets in the U.S. The airline serves destinations across the U.S., Latin America, and the Caribbean. Spirit is also dedicated to positive community engagement through the Spirit Charitable Foundation.
This announcement is based on a press release statement from Spirit Airlines.
InvestingPro Insights
As Spirit Airlines (NYSE: SAVE) welcomes Brian McMenamy as the Interim Chief Financial Officer, the company's financial health and market performance remain a focal point for investors.
According to InvestingPro data, Spirit Airlines is operating with a market cap of approximately $399.68 million and a Price / Book multiple of 0.4 as of the last twelve months leading up to Q1 2024. This low Price / Book multiple suggests that the company's assets are potentially undervalued in the market, which could be of interest to value investors.
Despite the anticipated cost savings and operational efficiencies, Spirit Airlines is grappling with a significant debt burden, as indicated by the two InvestingPro Tips highlighting the company's challenges in managing its debt and the potential difficulty in making interest payments. These concerns are critical for potential investors to consider, especially in the context of the airline's financial strategy and leadership changes.
InvestingPro Tips also reveal that analysts have revised their earnings expectations downwards for the upcoming period, which could signal caution for those looking to invest in the airline's stock. For readers interested in a deeper analysis, there are additional InvestingPro Tips available on the Spirit Airlines page at https://www.investing.com/pro/SAVE. Moreover, for those considering an InvestingPro subscription, use the coupon code PRONEWS24 to receive an extra 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.