Executive Decision: Ben Baldanza, Spirit Airlines
For his "Executive Decision" segment, Cramer once again spoke with Ben Baldanza, president and CEO of Spirit Airlines (SAVE), which today delivered a penny-a-share earnings beat, only to see its shares fall by 2.9%. Shares of Spirit are up 30% since Cramer last spoke with Baldanza in November.
Baldanza said that Spirit still had a good quarter, despite having to cancel four times as many flights as it did last year. He said his company is still on target to grow 15% to 20% a year, which is a good formula for stock appreciation.
When asked about Spirit's loyal customer base, Baldanza explained that customers love flying Spirit because of its low-cost approach, but that no-frills attitude does need to be explained to new customers as they expand and grow.Turning to the broader airline industry, Baldanza said that in 2008, the industry lost over $10 billion, but since then, it's restructured itself to make money with higher fuel prices. That means fewer players and higher fares, he admitted, but overall the airline industry is far more stable than its been in a long time. Cramer said the markets are rewarding companies that make money, and Spirit Airlines is making its shareholders a lot of money.
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