Zacks Investment Research has initiated coverage of Kartoon Studios, Inc. (TOON - Free Report) with an “Underperform” recommendation, reflecting concerns that outweigh the company’s long-term intellectual property opportunities.
Kartoon Studios is a global children’s entertainment and brand management company that develops, produces, licenses and distributes animated content across multiple platforms. Its portfolio includes well-known properties such as Rainbow Rangers, Llama Llama, Shaq’s Garage, Stan Lee’s Superhero Kindergarten, and Hundred Acre Wood’s Winnie and Friends. The company also owns animation and media assets, including Mainframe Studios, Frederator Networks, Beacon Media Group and Ameba TV.
While the company possesses an extensive library of intellectual property and a vertically integrated media ecosystem, Zacks believes that investors should remain cautious. Revenues declined 23.8% year over year in the first quarter of 2026, and the company continues to report sizable losses and a negative operating cash flow. Kartoon Studios has accumulated a substantial deficit over its operating history and has yet to demonstrate a sustainable path to profitability.
Another key concern is shareholder dilution. The company has increasingly relied on issuing stock to satisfy obligations and support liquidity, while a large base of outstanding warrants could create additional pressure on future shareholder returns. At the same time, customer concentration remains elevated, with a small number of clients accounting for a significant portion of revenues and receivables, increasing earnings volatility and business risks.
Zacks also notes that recent results have been affected by fluctuations in the value of the company’s investment in Germany-based Your Family Entertainment AG, creating earnings volatility that is unrelated to the core operating performance. Meanwhile, management has disclosed substantial doubt about the company’s ability to continue as a going concern without additional financing, highlighting ongoing funding and liquidity challenges.
The research report highlights several key factors that could drive Kartoon Studios' growth. The planned launch of Hundred Acre Wood’s Winnie and Friends in 2027, continued development of Stan Lee Universe assets, and the company’s broad content distribution infrastructure could create monetization opportunities if execution is successful. Cost-control efforts have also led to improved operating efficiency in recent quarters.
Although shares currently trade below the valuation multiples of the media industry and the broader market on an EV/Sales basis, Zacks believes that investors are appropriately discounting the stock to reflect its operational and financial challenges. The firm's “Underperform” recommendation reflects expectations that the company’s shares will lag broader market performance until meaningful improvements in profitability and balance-sheet strength become evident.
For a comprehensive analysis of Kartoon Studios' financial health, strategic initiatives and market positioning, you are encouraged to view the full Zacks research report. This in-depth report provides a detailed discussion of the company's operational strategies, financial performance, and the potential risks and opportunities that lie ahead.
Read the full Research Report on Kartoon Studios here>>>
Note: Our initiation of coverage on Kartoon Studios, which has a modest market capitalization of $41.8 million, aims to equip investors with the information needed to make informed decisions in this promising but inherently risky segment of the market.
The airline industry remains a battlefield of high fixed costs and intense competition, making the choice between the two largest carriers a critical decision for diversified investors. Which company offers the better balance of value and growth?
Delta Air Lines (DAL +1.56%) and United Airlines (UAL +2.58%) are the titans of the skies, often moving in tandem but following distinct financial flight paths. Delta focuses on a premium passenger experience and high-margin credit card revenue, while United bets big on global expansion and hub dominance.
The case for Delta Air LinesDelta Air Lines operates as a premier global carrier serving more than 200 million customers annually. It differentiates itself through a focus on high-margin revenue streams, specifically its partnership with American Express. This relationship brought in nearly $8.2 billion during 2025 and serves as a critical buffer against the inherent volatility of fuel prices. By targeting the premium segment, Delta aims to capture travelers willing to pay more for reliability and comfort.
The company is a significant player among industrial stocks that rely on steady consumer demand and business travel. In FY 2025, revenue reached approximately $63.4 billion, representing growth of roughly 2.8% over the previous year. Net income for the period was close to $5.0 billion, resulting in a net margin of nearly 7.9%, up from 5.6% in 2024.
As of its December 2025 balance sheet, the debt-to-equity ratio is approximately 1.0x, which measures total debt relative to shareholders’ equity. The current ratio, which gauges the ability to cover short-term debts with short-term assets, is roughly 0.4x. Free cash flow, defined as cash from operations minus capital expenditures, reached nearly $3.8 billion, providing the company with the liquidity needed to modernize its fleet and reward investors.
The case for United AirlinesUnited Airlines operates an expansive global network, helping roughly 175 million customers reach over 370 destinations across six continents. Its business strategy centers on hub dominance in major markets like Chicago, Denver, and San Francisco. A key pillar of its loyalty strategy is a partnership with JPMorgan Chase (JPM +2.28%), which helps drive consistent engagement and high-margin credit card revenue from its MileagePlus program.
The carrier has focused heavily on international expansion, positioning itself as a leader in long-haul travel. In FY 2025, revenue reached nearly $59.1 billion, up approximately 3.5% from the previous fiscal year. Net income for the year was roughly $3.4 billion, resulting in a net margin of close to 5.7%, which shows a steady improvement over the 4.9% margin recorded in 2023.
As of the December 2025 balance sheet, the debt-to-equity ratio is approximately 2.0x, indicating total debt is twice shareholder equity. The current ratio, which measures how well the company covers short-term liabilities with short-term assets, stands at roughly 0.6x. Free cash flow reached nearly $2.6 billion for the year, which represents cash from operations after subtracting capital spending on new aircraft and engine upgrades.
Risk profile comparisonDelta faces significant risks from technology disruptions and cybersecurity threats. The company cited a major 2024 outage caused by CrowdStrike (CRWD 1.26%) as a reminder of its dependence on complex IT systems. It also faces intense competition from American Airlines (AAL +2.35%) and Southwest Airlines (LUV +2.66%), which can pressure ticket prices and affect overall profitability. Additionally, fluctuations in fuel prices and evolving environmental regulations could significantly increase its long-term operating costs.
United is particularly vulnerable to infrastructure constraints and air traffic control staffing shortages. These issues can lead to operational delays and increased costs at major hubs like Newark and Chicago. The company also faces rising costs from environmental mandates and the need to invest in sustainable aviation fuel. Like its peers, United must navigate intense competition from international carriers that may receive state subsidies, potentially impacting its market share in key global regions.
Valuation comparisonUnited currently looks cheaper than Delta based on its forward P/E and its P/S ratio, though Delta offers higher net margins.
MetricDelta Air LinesUnited AirlinesSector BenchmarkForward P/E14.9x12.4x30.1xP/S ratio0.8x0.6xn/aSector benchmark uses the SPDR XLI sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
United Airlines and Delta Air Lines are both major airlines with several hubs in the U.S. and serve over 300 airports. They offer different opportunities to investors, though. One appears to offer better growth at a lower valuation, and the other is known for its consistent performance. Here are a few considerations for making that decision.
In recent years, United Airlines has been focusing on its growth. It is undertaking a huge expansion, with new aircraft and more international destinations. Its profitability and revenue growth have been impressive. However, its shares trade at a lower valuation than Delta’s. This may indicate strong future earnings potential for investors who think the expansion will pay off.
Delta Air Lines has targeted business and higher-income travelers by focusing on premium seating and luxurious lounges. It is also partnering with American Express. This approach has earned customer loyalty over the years, and it is viewed as one of the most reliable airline stocks.
It’s not an easy choice, because I tend to favor reliable, conservative investments. But it’s hard to ignore the potential upsi United Airlines offers, with its low valuation and ambitious expansion plans already in progress. So, I would fly United on this trip, because the company's growth, valuation, and optimism make it a more compelling opportunity.
While the market remains mesmerized by artificial intelligence (AI) stocks, there is a sector of the old economy that has outperformed over the past month.
Airline stocks United Airlines (UAL +2.58%), Delta Air Lines (DAL +1.56%), and Southwest Airlines (LUV +2.66%) are up handsomely, with Delta even outperforming the S&P 500 in 2026 with its 17.4% rise so far. These are somewhat surprising developments, given that the war in Iran has sent the price of oil and jet fuel soaring.
Airline stocks and soaring fuel prices The following chart shows a broad-based recovery over the past month.
Data by YCharts.
It's surprising, given that oil prices are still in the $90-per-barrel range, compared with $60 per barrel before the conflict began. Moreover, the unavailability of crude oil and refined products that typically flow through the Strait of Hormuz has sent jet fuel crack spreads soaring this year.
For example, Delta CEO Ed Bastian said, "The war in the Middle East has driven an unprecedented spike in jet fuel, with prices roughly double what they were earlier in the year." The company declined to update its full-year guidance because of the uncertainty created by the conflict and its impact on jet fuel prices.
Image source:Getty Images.
Wall Street downgrades expectations That said, investors and Wall Street analysts have wasted no time in lowering expectations for airline stocks. Here's how the Wall Street consensus for adjusted diluted earnings per share (EPS), according to S&P Global Market Intelligence/Visible Alpha, has been lowered over the past three months for all three stocks.
Airline
EPS Estimate
3 Months Ago
for 2026
Current
EPS Estimate
for 2026
EPS Estimate
3 Months Ago
for 2027
Current
EPS Estimate
for 2027
United Airlines
$13.33
$9.46
$15.24
$14.59
Delta Air Lines
$7.19
$5.54
$8.20
$8.05
Southwest Airlines
$4.37
$2.71
$5.27
$4.44
Data source: S&P Global Marketplace/Visible Alpha.
There's a pronounced reduction in 2026 earnings expectations, but Delta and United's expectations haven't changed much for 2027.
Why Delta and United have outperformed All the airlines have been able to increase pricing to offset higher fuel costs because end demand remains high, and the market is pricing in a resolution to the conflict.
Regarding end demand, Delta's Bastian said in April, "The acceleration we saw in March is carrying forward into the June quarter." At the end of May, United CEO Scott Kirby said, "As everyone knows, demand has remained strong as is well publicized." That came at the same investment conference where Robert Jordan, CEO of low-cost airline Southwest, said:" [T]he consumer remains very strong despite this rise in fares. So I'm becoming increasingly bullish that we will be able to cover these fuel increases with revenue increases."
Where next for airlines While airlines have reduced capacity in response to rising fuel prices and earnings estimates have come down, Delta and United, in particular, have demonstrated they can push through price increases in the current environment, and they are likely to emerge as winners from a period of capacity constraints.
Moreover, both airlines have diversified their revenue streams, making them relatively insulated from the industry's decades-long cyclicality. Delta in particular remains a top stock to buy for 2026.
Shareholders are encouraged to contact the firm to discuss their rights and options at no cost or obligation. We would handle any matter on a contingent fee basis, whereby you would not be responsible for out-of-pocket payment of our legal fees or expenses.
Shareholders should contact the firm immediately as there may be limited time to enforce your rights.
, /PRNewswire/ -- Halper Sadeh LLC, an investor rights law firm, is investigating whether certain officers and directors of Southwest Airlines Co. (NYSE: LUV) breached their fiduciary duties to shareholders.
If you currently own Southwest stock and are a long-term shareholder, you may be able to seek corporate governance reforms, the return of funds back to the company, a court-approved financial incentive award, or other relief and benefits. Please click here to learn more about your legal rights and options or contact Daniel Sadeh or Zachary Halper at (212) 763-0060 or [email protected] or [email protected].
Why Your Participation Matters:
Shareholder involvement can help improve a company's policies, practices, and oversight mechanisms to create a more transparent, accountable, and effectively managed organization, which can enhance shareholder value.
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A Southwest Airlines jet comes in for a landing at LaGuardia Airport in New York City, New York, U.S., January 11, 2023. REUTERS/Mike Segar Purchase Licensing Rights, opens new tab
SummaryCompaniesMAX 7 revenue service expected in 2027Southwest focused on MAX, not second fleet typeStarlink rollout begins; Amazon Leo not ruled outRIO DE JANEIRO, June 6 (Reuters) - Southwest Airlines (LUV.N), opens new tab expects Boeing's (BA.N), opens new tab long-delayed 737 MAX 7 to enter revenue service in 2027 and remains focused on the MAX family rather than adding another aircraft type to reduce risk, Chief Operating Officer Andrew Watterson told Reuters on Saturday.
Asked about Airbus's (AIR.PA), opens new tab A220, Watterson said Southwest was focused on the MAX.
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"Diversification doesn't come through a second fleet type," Watterson said in an interview on the sidelines of the International Air Transport Association's annual meeting in Rio de Janeiro. "A second fleet type can increase your risk."
"It doesn't make sense to lose focus on that," he added.
The MAX 7 is still awaiting certification from the U.S. Federal Aviation Administration. Watterson said Southwest plans to do about six months of internal work after certification, including adding the aircraft to its operating specifications and manuals.
"The clock starts when they certify it," he said.
Watterson said the MAX 7 delay had not forced Southwest to hold back specific routes, but had limited its ability to better match aircraft size with demand. The penalty, he said, is having too many larger aircraft and not enough smaller jets for periods or markets with lower demand.
STARLINK ROLLOUTSouthwest is also moving ahead with Starlink-powered Wi-Fi, but Tony Roach, the airline's chief customer and brand officer, said the carrier has not ruled out Amazon's Leo satellite network.
Roach said Southwest expects to have an aircraft serviceable with Starlink later this month.
The airline has targeted equipping 300 aircraft with Starlink by year-end, but the pace depends on how fast Starlink can supply equipment, the executives added.
"Our tech ops can retrofit as fast as Starlink can deliver," Watterson said.
Watterson said activist investor Elliott Investment Management was right that Southwest had been too slow to change, even though many changes were already underway.
"What Elliott was unequivocally correct about is we were too slow," he said.
Watterson said investors had underestimated Southwest customers' willingness to pay for new products, and said revenue per available seat mile would be the "litmus test" for whether the changes are working.
Reporting by Rajesh Kumar Singh in Rio de Janeiro
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Rajesh Kumar Singh is the U.S. Aviation Correspondent at Reuters, based in Chicago, where he reports on airlines, aircraft manufacturers, and regulatory developments that shape the global aviation industry. Prior to this role, he covered U.S. manufacturing and trade policy, including the U.S.–China trade wars, where his work delved into the disruption facing American businesses and the strategic responses of major corporations. He began his career with Reuters in India, where he reported on a wide range of issues covering the country's economic complexities—from its recovery after the global financial crisis to the challenges of inflation and governance.
Book an adventure for less and earn more Rapid Rewards® points for future travel
, /PRNewswire/ -- Southwest Airlines Co. (NYSE: LUV) launches the Week of WOW, one of the carrier's biggest sales of the year. Starting today through June 11, Customers can save up to 40% off base fares using code FLYWOW for flights from Aug. 4 to Dec.16, 2026,1 along with promotions on hotels, rental cars, cruises, and Getaways by Southwest™ vacation packages. Check out some of the nonstop routes on sale now available on Southwest.com®, with one-way as low as 40% off between:
Baltimore and Orlando, Dallas and Las Vegas, Dallas and San Diego, Austin and New Orleans, and Denver and Tampa. "Southwest Customers can book deals across all of our travel products—and with more than 20 million seats on sale, including millions of nonstop flights to destinations that our Customers love—our Week of WOW offers the perfect opportunity to book that trip," said Sabrina Callahan, Senior Vice President and Chief Digital & Marketing Officer. "Delivering some of the best deals of the year is another way we're focused on giving Customers more reasons than ever to fly Southwest, alongside our Legendary Hospitality, enhanced onboard offerings, rewarding loyalty program, and industry leading flexibility with no change or cancel fees."2
Savings All Along the Way
Customers can shop at Southwest.com for discounts on:
Fares: Using code FLYWOW, Customers can save up to 40% off base fares for select flights from Aug. 4 to Dec.16, 2026.1 Rental Cars: Powered by Southwest's newly enhanced car rental platform, Customers can save up to 25% off base rates plus earn 1,200 Rapid Rewards points on two-day or longer car rentals with Dollar.3 Cruises: Customers can earn 2X Rapid Rewards points on eligible cruises departing on or before Dec. 31, 2027.4 Hotels: Customers can earn 5,000 Rapid Rewards bonus points or receive a 5,000 Rapid Rewards points discount for select hotel stays from June 8, 2026, through June 30, 2027.5 More Reasons to Book the Vacation
Getaways by Southwest is bringing even more deals to Customers who want to book vacation packages. Customers can save up to $500 on a vacation package for two,6 plus two free checked bags.7
Unlock More Value as a Rapid Rewards Member
Join Rapid Rewards to unlock access to free WiFi thanks to T-Mobile®,8 tier benefits, and points by flying or spending with eligible partners. Members can purchase points to earn a reward to book their favorite destination or a new Southwest route. All Rapid Rewards rules and regulations apply at Southwest.com/rrterms.
ABOUT SOUTHWEST AIRLINES CO.
Southwest Airlines Co. operates one of the world's most admired and awarded airlines, offering its one-of-a-kind value and Hospitality at 121 airports across 12 countries. Southwest took flight in 1971 to democratize the sky through friendly, reliable, and low-cost air travel and now carries more air travelers flying nonstop within the United States than any other airline.9 By empowering its more than 73,00010 People to deliver unparalleled Hospitality, the maverick airline cherishes a passionate loyalty among more than 134 million Customers carried in 2025. Southwest leverages a unique legacy and mission to serve communities around the world including harnessing the power of its People and Purpose to put communities at the Heart of its success. Learn more by visiting Southwest.com/citizenship.
1 Use code FLYWOW by June 11 for travel on select flights Aug. 4 to Dec. 16, 2026. Restrictions, exclusions, and blackouts apply. Seats/days/markets limited. Discount applied pre-government taxes/fees. Additional fees may apply.
2 No change fees: Fare difference may apply. No cancel fees: All fare types are eligible for cancellations without a fee. For round trip reservations, if one or both flight segments is booked with a Basic fare, cancellations are only permitted if either a) both flight segments are canceled or b) the Basic fare segment(s) is upgraded. Failure to cancel a reservation at least 10 minutes prior to original scheduled departure may result in forfeited travel funds.
3 Valid at participating Dollar airport locations. Valid for bookings June 8 to June 15, 2026, and vehicle pickup through Nov. 30, 2026. Taxes and fees excluded. Terms and exclusions apply.
4 Book June 8, 2026 to June 15, 2026. Terms apply. All Rapid Rewards rules and regulations apply and can be found at southwest.com/rrterms..
5 Book June 8, 2026 to June 15, 2026. Terms apply. All Rapid Rewards rules and regulations apply and can be found at southwest.com/rrterms. .
6 Based on 2-person, 5-night minimum. Restrictions, exclusions, and blackouts may apply. Seats/days/markets limited 1-day advance. purchase required. Additional fees may apply. See Getaways terms and conditions.
7 Getaways by Southwest™ Customers receive their first and second checked bags for free. Weight and size limits apply. Additional allowances, benefits, and/or exceptions may apply. Learn more.
8 Where available. Available only on WiFi-enabled designated aircraft.
9 Based on U.S. Dept. of Transportation quarterly Airline Origin & Destination Survey as of Q4 2025
10 Fulltime-equivalent active Employees as of March 31, 2026.
SAY WOW TO DISCOUNT TRAVEL: SOUTHWEST AIRLINES DELIVERS WEEK OF DEALS ON FLIGHTS, HOTELS, CARS, AND VACATIONS SAY WOW TO DISCOUNT TRAVEL: SOUTHWEST AIRLINES DELIVERS WEEK OF DEALS ON FLIGHTS, HOTELS, CARS, AND VACATIONS PR Newswire
DALLAS, June 8, 2026
Book an adventure for less and earn more Rapid Rewards® points for future travel
, /PRNewswire/ -- Southwest Airlines Co. (NYSE: LUV) launches the Week of WOW, one of the carrier's biggest sales of the year. Starting today through June 11, Customers can save up to 40% off base fares using code FLYWOW for flights from Aug. 4 to Dec.16, 2026,1 along with promotions on hotels, rental cars, cruises, and Getaways by Southwest™ vacation packages. Check out some of the nonstop routes on sale now available on Southwest.com®, with one-way as low as 40% off between:
Baltimore and Orlando,Dallas and Las Vegas,Dallas and San Diego,Austin and New Orleans, andDenver and Tampa."Southwest Customers can book deals across all of our travel products—and with more than 20 million seats on sale, including millions of nonstop flights to destinations that our Customers love—our Week of WOW offers the perfect opportunity to book that trip," said Sabrina Callahan, Senior Vice President and Chief Digital & Marketing Officer. "Delivering some of the best deals of the year is another way we're focused on giving Customers more reasons than ever to fly Southwest, alongside our Legendary Hospitality, enhanced onboard offerings, rewarding loyalty program, and industry leading flexibility with no change or cancel fees."2
Savings All Along the Way
Customers can shop at Southwest.com for discounts on:
Fares: Using code FLYWOW, Customers can save up to 40% off base fares for select flights from Aug. 4 to Dec.16, 2026.1Rental Cars: Powered by Southwest's newly enhanced car rental platform, Customers can save up to 25% off base rates plus earn 1,200 Rapid Rewards points on two-day or longer car rentals with Dollar.3Cruises: Customers can earn 2X Rapid Rewards points on eligible cruises departing on or before Dec. 31, 2027.4Hotels: Customers can earn 5,000 Rapid Rewards bonus points or receive a 5,000 Rapid Rewards points discount for select hotel stays from June 8, 2026, through June 30, 2027.5More Reasons to Book the Vacation
Getaways by Southwest is bringing even more deals to Customers who want to book vacation packages. Customers can save up to $500 on a vacation package for two,6 plus two free checked bags.7
Unlock More Value as a Rapid Rewards Member
Join Rapid Rewards to unlock access to free WiFi thanks to T-Mobile®,8 tier benefits, and points by flying or spending with eligible partners. Members can purchase points to earn a reward to book their favorite destination or a new Southwest route. All Rapid Rewards rules and regulations apply at Southwest.com/rrterms.
ABOUT SOUTHWEST AIRLINES CO.
Southwest Airlines Co.operates one of the world's most admired and awarded airlines, offering its one-of-a-kind value and Hospitality at 121 airports across 12 countries. Southwest took flight in 1971 to democratize the sky through friendly, reliable, and low-cost air travel and now carries more air travelers flying nonstop within the United States than any other airline.9 By empowering its more than 73,00010 People to deliver unparalleled Hospitality, the maverick airline cherishes a passionate loyalty among more than 134 million Customers carried in 2025. Southwest leverages a unique legacy and mission to serve communities around the world including harnessing the power of its People and Purpose to put communities at the Heart of its success. Learn more by visiting Southwest.com/citizenship.
1 Use code FLYWOW by June 11 for travel on select flights Aug. 4 to Dec. 16, 2026. Restrictions, exclusions, and blackouts apply. Seats/days/markets limited. Discount applied pre-government taxes/fees. Additional fees may apply.
2 No change fees: Fare difference may apply. No cancel fees: All fare types are eligible for cancellations without a fee. For round trip reservations, if one or both flight segments is booked with a Basic fare, cancellations are only permitted if either a) both flight segments are canceled or b) the Basic fare segment(s) is upgraded. Failure to cancel a reservation at least 10 minutes prior to original scheduled departure may result in forfeited travel funds.
3 Valid at participating Dollar airport locations. Valid for bookings June 8 to June 15, 2026, and vehicle pickup through Nov. 30, 2026. Taxes and fees excluded. Terms and exclusions apply.
4 Book June 8, 2026 to June 15, 2026. Terms apply. All Rapid Rewards rules and regulations apply and can be found at southwest.com/rrterms..
5 Book June 8, 2026 to June 15, 2026. Terms apply. All Rapid Rewards rules and regulations apply and can be found at southwest.com/rrterms. .
6 Based on 2-person, 5-night minimum. Restrictions, exclusions, and blackouts may apply. Seats/days/markets limited 1-day advance. purchase required. Additional fees may apply. See Getaways terms and conditions.
7 Getaways by Southwest™ Customers receive their first and second checked bags for free. Weight and size limits apply. Additional allowances, benefits, and/or exceptions may apply. Learn more.
8 Where available. Available only on WiFi-enabled designated aircraft.
9 Based on U.S. Dept. of Transportation quarterly Airline Origin & Destination Survey as of Q4 2025
10 Fulltime-equivalent active Employees as of March 31, 2026.
View original content:https://www.prnewswire.com/news-releases/say-wow-to-discount-travel-southwest-airlines-delivers-week-of-deals-on-flights-hotels-cars-and-vacations-302793734.html
, /PRNewswire/ -- Southwest Airlines Co. (NYSE: LUV) and Singapore Airlines (SIA) have partnered to offer travelers around the globe single-ticket journeys to and from the United States, connecting to places where Southwest and Singapore Airlines fly. Southwest Executives shared the news of the interline partnership during the International Air Transport Association (IATA) Annual General Meeting in Brazil.
The SIA Group, which includes Singapore Airlines and Scoot, operates service to more than 130 destinations in 35 countries and territories, and flies between its global hub, Singapore Changi Airport and three airports in the United States served by Southwest—Los Angeles (LAX), Seattle/Tacoma (SEA), and San Francisco (SFO). In those shared gateway airports, international travelers can now seamlessly connect to nearly 120 airports in the Southwest network. Tickets are available through Singapore Airlines, travel agents, and travel websites.
"Singapore Airlines becomes the eighth carrier in our partnership portfolio exemplified by its quality and reach. These carriers are facilitating access to our network for a growing global audience drawn to our improved onboard product and increasingly choosing to fly with us," said Andrew Watterson, Southwest Airlines Chief Operating Officer. "Journeys that pair Southwest and Singapore Airlines not only connect new geographies but also create consistent high-quality Customer experiences."
With assigned seating, optional Extra Legroom1 and enhanced boarding all introduced earlier this year, Southwest continues to invest purposefully in onboard experiences with feedback-driven enhancements toward greater comfort and more choice. These thoughtful improvements aim to showcase Hospitality for which the People of Southwest Airlines are world famous.
Southwest Airlines has initiated service at five airports in 2026 including St. Thomas, in the U.S. Virgin Islands, Sint Maarten, Santa Rosa/Sonoma County, Calif., Knoxville, Tenn., and Anchorage.
Including Singapore Airlines, Southwest now has eight active partnerships with overseas carriers connecting travel between its network and places across the globe in Asia, Europe, the Middle East, and Africa.
ABOUT SOUTHWEST AIRLINES
Southwest Airlines Co. operates one of the world's most admired and awarded airlines, offering its one-of-a-kind value and Hospitality at 122 airports across 12 countries. Southwest took flight in 1971 to democratize the sky through friendly, reliable, and low-cost air travel and now carries more air travelers flying nonstop within the United States than any other airline2. By empowering its more than 73,000 People3 to deliver unparalleled Hospitality, the maverick airline cherishes a passionate loyalty among more than 134 million Customers carried in 2025. Southwest leverages a unique legacy and mission to serve communities around the world including harnessing the power of its People and Purpose to put communities at the Heart of its success. Learn more by visiting Southwest.com/citizenship.
Customers in Extra Legroom seats will be offered a premium snack (on flights traveling 301 miles or more) and complimentary premium drinks (on flights traveling 251 miles or more). Service may be modified or limited at Southwest's discretion. Must be 21 or older to consume alcoholic beverages. Alcohol served onboard must be consumed onboard the aircraft. Based on U.S. Dept. of Transportation quarterly Airline Origin & Destination Survey as of Q4 2025 Fulltime-equivalent active Employees as of March 31, 2026 ABOUT SINGAPORE AIRLINES
The history of Singapore Airlines (SIA) Group dates to 1947 with the maiden flight of Malayan Airways. The airline was later renamed Malaysian Airways and then Malaysia-Singapore Airlines (MSA). In 1972, MSA split into Singapore Airlines and Malaysian Airline System. Initially operating a modest fleet of 10 aircraft to 22 destinations in 18 countries, SIA has since grown to be a world-class international airline group that is committed to the constant enhancement of the three main pillars of its brand promise: Service Excellence, Product Leadership, and Network Connectivity. Singapore Airlines is the world's most awarded airline. For more information, please visit www.singaporeair.com.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
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What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
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#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
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That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Southwest Airlines (LUV - Free Report) Based in Dallas, TX, Southwest Airlines is a passenger airline that provides scheduled air transportation in the United States and 'ten near-international' markets. The company was incorporated in Texas in 1967 and commenced operations in 1971 with three Boeing 737 jets serving the cities of Dallas, Houston and San Antonio.
LUV is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 14.62; value investors should take notice.
Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.09 to $2.81 per share. LUV also boasts an average earnings surprise of +247%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, LUV should be on investors' short list.
Spirit Airlines said on Sunday it had almost completed refunding passengers and returning its crew to their home bases following its decision to cease operations over the weekend.
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A Spirit Airlines worker waits for passengers at Chicago's O'Hare International Airport on March 10. Scott Olson/Getty Images Yeneshia Thomas was in her Central Florida home when she got a surprising email at about 12:30 a.m. on Saturday: Spirit Airlines was shutting down.
Thomas, 42, first heard the news from her union, but didn't fully believe it. The flight attendant still hoped Spirit Airlines executives would secure a $500 million federal bailout.
"We were all like, 'Nah. Until the company emails us, we don't believe it,'" Thomas said, referring to her and her colleagues.
The bailout negotiations fell apart, and Spirit Airlines announced at 3 a.m. that it would cease operations "effective immediately." It then canceled all its flights.
For Thomas and about 17,000 other employees, it was a gut punch. She had finished her shift hours before the news broke, unaware that it would be her last.
"This broke a lot of people's hearts," she said.
She said some employees were still on the road and had to get back home using other airlines, but that both Spirit and the union have stepped up to help employees navigate the transition.
"It feels like you're in a relationship, and your boyfriend is cheating on you, and everyone is there watching, but you didn't know," Thomas said. "You just heard it on the internet."
Spirit Airlines canceled its flights after ceasing operations on Saturday. Joe Raedle/Getty Images Thomas said she received another email on Saturday telling her she was no longer allowed to wear her uniform. She said a colleague who hadn't read the email tried to go through security but was told by a TSA agent to "take your uniform off."
"We're all stunned because we're like, 'What happened?' We were doing good. We were putting out the work. Why didn't anyone say anything?" Thomas said.
Sign of the timesAlthough employees hadn't gotten official word in advance that Spirit Airlines would shut down over the weekend, Thomas said she saw the signs. Certain routine flights were canceled with little warning on Friday, for example.
Spirit Airlines had navigated turbulent winds in recent years, including two bankruptcies, a failed merger with JetBlue, employee furloughs, layoffs, and pay cuts. The ongoing US and Israeli war on Iran has also sent jet fuel prices skyrocketing, forcing airlines to implement cost-cutting measures.
Thomas was among the Spirit Airlines employees furloughed in December. She returned to her role in March. She also took a pay cut.
"I had hopes that we were going to make it because they called us back," Thomas said.
Despite how it ended, Thomas said she enjoyed her time at Spirit Airlines.
"At the end of the day, we had a big job," Thomas said. "Getting everyone from point A to point B was our biggest goal, which we did in a safe manner and as comfortably as possible."
Thomas said she found her job fulfilling and enjoyed interacting with people from all walks of life.
"The minute they see the uniform, people come up to me, and they say, 'I love Spirit Airlines. I take it all the time and see my grandchildren,'" Thomas said. "That made me feel so good."
She's also built ties with her coworkers as she traveled across the country.
"It's like a big family because you might end up on an airplane with someone that you've never met in your life, but before you leave, you know their whole life," Thomas said.
She said travelers will likely miss the budget-friendly option Spirit offered, especially amid rising ticket prices.
"They're feeling it now," Thomas said. "Someone just messaged me and she said, 'What am I going to do? Now I have to buy a $700 ticket.'"
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Lauren Edmonds You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Lauren Edmonds is an award-winning reporter on the Business News team. When news isn't breaking, she covers personal finance, kitchen-table economics, and paths to financial freedom, including investing, real estate, side hustles, and small business. She also writes about guaranteed and universal basic income programs in the United States.Lauren has also covered lifestyle and entertainment, digital culture, and more. She has a master's degree from the Columbia University Graduate School of Journalism and resides in New York City.Do you have an interesting story to tell? You can reach Lauren at [email protected] or on Signal at ledmonds0.07.Popular StoriesNetflix wants to be Disney when it grows up Why Hollywood is paying this 17-year-old up to $20,000 to boost film trailers with TikTok editsHere's all the free money Trump's talked about giving Americans during his second term — and where it all standsA 17-year-old earned $72,000 after investing his e-commerce profits into stocks. Here's why he bet on the tech industry.Lawmakers float a nationwide basic income experiment that would cover the cost of a 2-bedroom apartmentNearly 30,000 Americans have received about $335 million in basic income. Here are 5 takeaways. Americans ditch suffocating healthcare costs and divisive politics to retire in Italy: 'It's the way they approach life'From 'road-schooling' to gas that costs $500, this family of 4 shares what it's like living in a solar-powered Greyhound bus
Jonathan Kanter, Fmr. Asst. Attorney General, says Spirit's collapse stems from management decisions, warns on weak airline competition, and sees the OpenAI case as complex but unlikely to force major structural change.
An airline worker waits at the Spirit Airlines terminal at LaGuardia Airport in Queens, in New York City, U.S., May 2, 2026. REUTERS/David 'Dee' Delgado Purchase Licensing Rights, opens new tab
CompaniesWASHINGTON, May 4 (Reuters) - Bankrupt discount carrier Spirit Airlines (FLYYQ.PK), opens new tab, which ceased operations on Saturday, asked a U.S. bankruptcy court for approval to pay retention bonuses to remaining employees and said it had no choice but to end operations.
Spirit is seeking court approval to pay $10.7 million in retention bonuses to employees who remain as the company ends operations -- averaging $76,000 per participant -- and will pay more to the top three executives but has not yet disclosed how much.
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"Having fought valiantly for months to reorganize, and having all but succeeded, (Spirit is) left with no alternative to an orderly wind-down of operation," Chief Financial Officer Fred Comer said on Monday in a court filing.
"There are no longer any viable paths to a restructuring or continued operations."
Spirit said the payments to the top three executives will replace some of the payments it would have offered the senior executives under annual incentive and cash incentive plans in place before the bankruptcy.
Bondholders may challenge Spirit's management bonuses, as some aspects of the wind-down plan, such as how liquidation proceeds and cost savings will be measured, are still being negotiated with the debtor-in-possession lenders, according to a separate filing.
The airline said it will retain about 150 employees before decreasing its headcount to about 40 after the first three months, with expectations that its liquidation plan will be completed within that time frame.
Spirit says it does not have money to conduct an organized auction of its aircraft, engines and other equipment, and is asking the court for permission for fast sales or to abandon and let the lenders repossess.
The carrier had been in advanced talks with the Trump administration over a $500 million government bailout that would have helped it exit bankruptcy and granted the government up to 90% of Spirit's equity. Those talks collapsed after some creditors objected.
Global carriers are contending with surging jet fuel prices since the U.S.-Israeli strikes on Iran disrupted traffic through the Strait of Hormuz, in the air travel industry's worst crisis since the COVID-19 pandemic. Spirit was already struggling to turn a profit before the fuel shock and has faced $100 million in incremental fuel costs since March 1.
"The material additional costs to Spirit proved to be too much for its available liquidity to absorb," Spirit said.
Reporting by David Shepardson in Washington and Dietrich Knauth and Doyinsola Oladipo in New York; Editing by Nick Zieminski and Bill Berkrot
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Spirit Airlines' more than three-decade run ended over the weekend, but on Tuesday it was just starting the monthslong process of dismantling the company after the biggest U.S. airline collapse in a generation.
Spirit and its stakeholders were in bankruptcy court in White Plains, New York, to start that process, which will take months. The hearing included discussions about airport landing fees, aircraft and staffing.
The carrier filed a cumulative wind-down budget of around $217 million, though that number could change.
The budget went out to February 2028. It included more than $52 million in employee costs through July and another more than $52 million for aircraft-related expenses.
The airline had 59 Airbus A320s in service and 63 in storage, as well as 37 of the larger A321s in service, and 13 of them in storage, according to aviation data firm Cirium. More than three-quarters of its fleet was leased.
Spirit shut down operations after years of struggles, most recently from heavy debt loads and a surge in costs.
Spirit's lawyer, Marshall Huebner of Davis Polk, told a bankruptcy court on Tuesday that the jump in jet fuel prices following the U.S.-Israel attacks on Iran in February left the carrier with no choice but to shut down. That added $100 million in incremental costs for Spirit in March and April, he said.
Talks for a potential government bailout in the form of a $500 million loan that could have given the government an up to 90% stake in Spirit fell apart late last week, and the carrier officially shut down at 3 a.m. ET on Saturday.
Spirit passengers scrambled to rebook reservations. American Airlines, JetBlue Airways, Southwest Airlines, United Airlines and others said they have flown tens of thousands of Spirit customers who were stranded by the collapse.
Spirit had flown about 50,000 people in the day leading up to its closure. The airline said about 17,000 direct and indirect employees lost their jobs.
"The closing of Spirit Airlines is a sad and unfortunate event that adversely affects many parties, and that's particularly true for the thousands of folks who are Spirit employees and families who depend on them," the presiding judge, Sean Lane, said at Tuesday's hearing.
"The stress level for these employees and affinities is very high, and they likely have many questions," he continued. "Hopefully there'll be some information discussed today to provide some answers to some of those questions, or provides information about where to get those answers. Bankruptcy can be a very difficult process, and today is a sad example of that."
SIXT stands ready to help affected travelers get where they need to go and welcomes Spirit Airlines team members to explore career opportunities
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--SIXT USA, a subsidiary of Sixt SE, a global leader in premium mobility services, today announced a special offer for travelers impacted by the Spirit Airlines suspension of operations, providing those in need of alternative ground transportation with discounted one-way rental rates to help meet their near-term travel needs. SIXT is also inviting affected Spirit Airlines team members to explore career opportunities with the company.
Support for Spirit Airlines Travelers
SIXT is offering up to 20% off one-way rentals at participating U.S. locations to travelers whose Spirit Airlines flights have been cancelled or disrupted. Reservations must be made by May 17, 2026, with rentals taking place between May 5 and May 31, 2026, for a duration of one to 14 days. Vehicles must be returned no later than June 10, 2026.
This offer is available for select vehicle categories across SIXT's network of more than 120 locations in 27 states, including 56 major airports — many of which previously served Spirit Airlines routes. Impacted travelers can book at www.sixt.com/partners/travelassistance/. Additional information about SIXT, including rental locations, is available at SIXT.com or via the SIXT app.
Support for Spirit Airlines Team Members
SIXT recognizes that Spirit team members are navigating an incredibly difficult moment and wants to offer meaningful support. As SIXT continues its U.S. expansion, the company is actively recruiting across a broad range of roles — from operations and customer service to sales and corporate functions including finance, HR, and revenue management. With U.S. headquarters in Fort Lauderdale and locations nationwide, SIXT offers opportunities close to home and across the country. Interested candidates are encouraged to visit www.sixt.jobs/us/spirit to learn more and apply.
Tom Kennedy, President, SIXT North America: "When travelers face unexpected disruptions, our job is to step up. SIXT has the network, the locations, and the team to provide real solutions for people who need to get where they're going. We also recognize the very real impact this has on Spirit team members, and as we continue our robust expansion across the United States, we encourage anyone looking for their next opportunity to explore what SIXT has to offer."
SIXT’s focus on innovation and service excellence has earned multiple industry accolades, including being named “Best Car Rental & Mobility Innovation” company at the 2025 Frequent Traveler Awards, “#1 Rental Car Company” in the 2025 USA TODAY 10Best Readers’ Choice Awards, and one of Travel + Leisure Readers’ Five Favorite Car Rental Companies for two consecutive years (2024 and 2025).
In just 15 years, the United States has become SIXT's most important growth market. Today, the company operates more than 120 rental branches across 27 states and serves 56 of the busiest airports in the country. With operations established in Canada since 2022, SIXT has extended its North American footprint into another billion-dollar market.
We’re proud of our performance in the J.D. Power 2025 North America Rental Car Satisfaction Study. Learn more: J.D. Power 2025 North America Rental Car Satisfaction Study
About SIXT
Sixt SE with its registered office in Pullach near Munich, is a leading international provider of high-quality mobility services. With its products SIXT rent, SIXT share, SIXT ride and SIXT+ car subscription the company offers a uniquely integrated premium mobility service across the fields of vehicle and commercial vehicle rental, car sharing, ride hailing and car subscriptions. The products can be booked, among others, through the SIXT App, which also contains the services of its renowned mobility partners. With the global rewards program SIXT ONE, the company is also strengthening customer retention across its core markets and offering members a fully digitally integrated experience with attractive benefits when renting vehicles. SIXT has a presence in more than 100 countries around the globe. The company offers its customers experiences that inspire and exceed their expectations – through a lived culture of innovation, a consistent premium offering in terms of fleet and service, and an attractive price-performance ratio. According to preliminary calculations, the Group achieved consolidated earnings before taxes of EUR 400.5 million in 2025 and a significant increase in consolidated revenue to EUR 4.28 billion. Sixt SE has been listed on the Frankfurt Stock Exchange since 1986 (ISIN ordinary share: DE0007231326, ISIN preference share: DE0007231334). For more information, please visit https://about.sixt.com/en/.
An American Airlines Boeing 737 and a Boeing 787 sit side by side at DFW International Airport in Dallas, Texas July 20, 2011. REUTERS/Darrell Byers Purchase Licensing Rights, opens new tab
CompaniesWASHINGTON, May 6 (Reuters) - Major U.S. passenger airlines spent just over $5 billion on jet fuel in March, up $1.8 billion or 56% from what they spent in February, the U.S. Transportation Department said on Wednesday.
The cost per gallon of fuel in March was $3.13, up 74 cents, and 31% over February. Fuel use rose 20% in March, USDOT added.
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Since the U.S.-Israeli war with Iran began, disruptions to shipping through the Strait of Hormuz have roiled global oil markets. Surging jet fuel prices have created the air travel industry's biggest crisis since the COVID-19 pandemic.
Airlines spent $3.88 billion in March 2025 on jet fuel, far below the $5.06 billion they spent in March of this year.
Major U.S. carriers have hiked air fares and baggage fees, cutting some routes and making other cost cuts. Fuel accounts for up to a quarter of airline operating expenses.
Ultra-low cost carrier Spirit Airlines, which ceased operations on Saturday, said this week it paid $100 million in additional fuel costs in March and April. It cited the fuel spike as the reason its restructuring plan failed and it was forced to end operatoins.
"Every airline is suffering from high fuel prices," Southwest Airlines CEO Bob Jordan told Reuters last week. "It's your job to build your business in a way that you're resilient and you can survive these things because they happen."
Low-cost carriers last month asked USDOT for a $2.5 billion government bailout to address higher fuel costs, but Transportation Secretary Sean Duffy said he did not think that was necessary "at this point."
Reporting by David Shepardson; Editing by David Gregorio
Our Standards: The Thomson Reuters Trust Principles., opens new tab
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Spirit Airlines and United Airlines removed over 54,000 flights, according to Cirium. CHARLY TRIBALLEAU/AFP via Getty Images Airlines canceled more than 75,000 flights this summer over a 10-day period, according to the aviation analytics firm Cirium.
On Tuesday, Cirium released an analysis of flight schedules between June 1 and September 30, comparing what those schedules looked like on April 24 versus May 4.
During those 10 days, airlines around the world removed more than 9.3 million seats, per Cirium.
US carriers accounted for the four largest reductions.
About 70% of the removed seats, or 33,000 flights, came from Spirit Airlines. The budget airline shut down last Saturday after negotiations for a federal bailout fell apart.
United Airlines reduced its summer schedule by over 21,000 flights over the 10-day period, marking the second-highest cancellation count.
Delta Air Lines removed around 7,300 flights, and American Airlines cut some 6,400 flights.
Airlines have faced significant cost increases since the war in Iran doubled jet fuel prices. In April, jet fuel exceeded $200 a barrel, but has dropped back to about $180 a barrel, according to the International Air Transport Association.
Jet fuel is typically an airline's second-highest expenditure after labor costs.
When Spirit announced it was winding down operations, it cited "the recent material increase in oil prices and other pressures on the business."
The budget airline filed for Chapter 11 restructuring in August 2025 and in November 2024.
United Airlines, which reported a $340 million increase in fuel costs during the first quarter, is also cutting its schedule.
CEO Scott Kirby spoke about capacity cuts at a JP Morgan conference in March. "I'd much rather make the mistake of leaving a couple of months' worth of demand on the table because we cut more, and then you can get it back, as opposed to making the mistake of oil prices staying higher and longer, and you're flying flights that lose cash," he said.
Many airlines are raising ticket prices and baggage fees to offset higher fuel costs.
US carriers are more exposed to the price shock because, unlike most European airlines, they do not use financial derivatives to hedge against fuel costs.
Even so, Europe is also facing cancellations. Lufthansa, the continent's largest airline group by revenue, canceled over 5,000 flights that were scheduled between June and September, per Cirium's data.
The German flag carrier last month announced it was canceling 20,000 short-haul flights through October, reducing its capacity by 1%.
Not every airline has been slashing its schedule.
Cirium's data showed Frontier Airlines added more than 14,600 flights to its summer schedule.
After Spirit shut down, Frontier announced it would add nine new routes plus daily flights in 18 markets formerly served by its low-cost rival.
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Pete Syme You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Pete Syme is an aviation reporter for Business Insider, based in London.He writes about all things related to the industry, such as flight diversions, aviation safety, airline updates, travel tips, plane tours, and aviation leaders.Pete has appeared on BBC News to discuss a Heathrow Airport closure and on Sky News to talk about Boeing.Before joining Business Insider in 2022, he graduated with an MA in Newspaper Journalism from City, University of London. While getting his BA in English from the University of Exeter, he was the award-winning deputy editor of the student newspaper, Exeposé.You can get in touch by emailing [email protected] or via Signal @syme.99.
Airlines for America President and CEO Chris Sununu discusses the European jet fuel shortage, TSA staffing issues, recent air traffic close calls and more on 'Varney & Co.' 0:00 European Jet Fuel Shortage Concerns 0:53 Why Domestic Airfares Are Rising 1:51 TSA Staffing Crisis & Government Shutdown 4:10 Air Traffic Control Close Calls & Modernization 5:12 Grading Transportation Secretary Sean Duffy
When Spirit Airlines’ yellow Airbus fleet went dark at 3:00 a.m. Eastern on May 2, stranding passengers and dissolving 17,000 jobs, the immediate culprits were obvious.
A doubled jet fuel bill traceable to the Iran conflict. A bankruptcy court that had run out of patience. A group of senior creditors led by Citadel and Ares who refused to subordinate their claims to a federal rescue package.
But the deeper diagnosis was written more than three decades earlier, in a Berkshire Hathaway shareholder letter dated 1992.
A thesis written in 1992 In that letter, Warren Buffett delivered what would become his most enduring critique of the airline business. The total profit earned by the entire domestic airline industry since the dawn of powered flight, he argued, was effectively zero. The mechanism he identified was “kamikaze pricing,” the practice common among carriers operating under bankruptcy protection or simply desperate for cash of selling seats below the cost of providing them.
Because air travel is a commodity sold from a vehicle with extraordinarily high fixed costs, any operator could fill an empty seat at almost any price and improve its day. Aggregate that behavior across an industry, Buffett warned, and you produce a permanent race to the bottom in which “you can’t be a lot smarter than your dumbest competitor.”
The carrier that became the dumbest competitor Spirit Airlines was, for nearly two decades, that competitor. Its “bare fare” model, which stripped every service and sold each one back as an ancillary while posting the lowest base price on the screen, became so disruptive that economists labeled the resulting industry-wide downward pressure on yields the “Spirit Effect.” For a time, Spirit’s cost structure was genuinely lower than that of legacy carriers, and the gap looked like a moat. It wasn’t.
Once Delta, United, and American introduced Basic Economy fares, they could match Spirit on price while offering vastly superior networks, frequent-flier programs, and brand reputations.
Spirit’s only differentiator quietly evaporated.
Buffett’s framework predicted exactly this outcome: in a commodity business, the competitor with the lowest cost has an advantage only as long as that cost gap is sustainable, and almost no cost gap in aviation ever is. Labor agreements get matched. IT systems get modernized. Fleets get refreshed. The moat fills in.
When the fuel bill arrived By the time Operation Epic Fury sent jet fuel from $2.24 to $4.51 per gallon in roughly sixty days, a swing J.P. Morgan’s Jamie Baker calculated would push Spirit’s operating margin from a projected positive 0.5% to negative 20%, the airline had no buffer left.
Spirit’s 2025 second Chapter 11 filing had already drained working capital. Its $250 million in remaining cash was encumbered by creditor liens. The Trump administration’s proposed $500 million bailout collapsed when senior lenders refused to cede priority to the government, and the wind-down began the next day.
A vindication priced in dollars The aftermath reads like the commodity thesis running in reverse. Within forty-eight hours of Spirit’s grounding, fares on its busiest routes climbed sharply. Fort Lauderdale to LaGuardia jumped from $49 to $139. Las Vegas to Dallas went from $39 to $124. Denver to Detroit moved from a $59 to $119 range up to a $179 floor. Analysts at Bank of America and TD Cowen welcomed the result not because travelers benefit, but because the carrier most responsible for “irrational pricing” had finally exited the market.
Buffett himself said nothing about Spirit’s demise. He handed the CEO role to Greg Abel earlier this year and has stepped back from individual security commentary. He didn’t need to. Berkshire’s $397 billion cash pile, parked overwhelmingly in Treasury Bills, is the comment.
The 1992 letter still describes the business it describes, and Spirit’s tail numbers ferrying empty to the Arizona desert this week are simply the latest receipts.
SummaryCompaniesMore A320neo planes available in the US after Spirit's demiseYoung Spirit A320neo jets are being dismantled for partsStrong demand for RTX Pratt & Whitney GTF engineNEW YORK, May 8 (Reuters) - The recent grounding of U.S. budget carrier Spirit Airlines could help ease shortages of next-generation RTX (RTX.N), opens new tab spare engines needed to keep late-model Airbus (AIR.PA), opens new tab single-aisle jets flying, industry executives and analysts say.
Spirit ceased operating its all-Airbus fleet on May 1 due to high jet-fuel prices. Its bankruptcy is leading to fresh cases of near-new A320neos being dismantled for parts - a trend that had already been occurring in the industry due to a severe shortage of RTX Pratt & Whitney Geared Turbofan engines.
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With more A320neo planes becoming available in the United States following Spirit's demise, the fuel-efficient GTF engines are often more appealing than the aircraft they power.
“We are seeing some of the GTF engines from the Spirit A320s being removed from the airframes and leased out to customers to support (aircraft on the ground)," said Austin Willis, CEO of Willis Lease Finance Corp (WLFC.O), opens new tab, who added that leasing rates for GTF engines have not declined.
"This is providing some limited temporary relief from the supply/demand imbalance."
Hundreds of A320neo planes have been grounded, due in part to long waiting times for engine inspections and repairs, and after a manufacturing problem at Pratt & Whitney put pressure on GTF engine output.
GTF engines power at least 40% of A320neos in service and compete for airline contracts with CFM International's (GE.N), opens new tab, (SAF.PA), opens new tab LEAP engine.
Airbus has complained of GTF shortages for new jets during a tug of war over who has priority to receive scarce engine supplies - assembly lines for new aircraft or airlines waiting for repairs.
Lars Wagner, CEO of Airbus' Commercial Aircraft business, declined to comment on the GTF during an interview on Wednesday.
AIRCRAFT PARTS PROVIDE RELIEFDick Allewelt, founder and owner of Allewelt Aviation Consulting GmbH in Germany, said teardowns of some Spirit aircraft "could have an easing effect on the spare engine market going forward."
Sumisho Air Lease, which leased late-model jets to Spirit, declined to comment. Lessor AerCap was not immediately available for comment.
RTX, which declined to comment, said in April that cases of grounded A320neo aircraft are declining due to greater capacity at repair shops.
Arizona-based aftermarket supplier KP Aviation said there are several former Spirit Airlines aircraft that are being marketed for disassembly and teardown.
"There's a lot of money in the engines," said KP Aviation Chief Commercial Officer Scott Butler. "The airframes, there may not be as much appetite" as more Spirit aircraft come to market, he said.
In February, Dublin-based aviation asset management company EirTrade Aviation and Chicago-based aviation and rail lessor RESIDCO said they would dismantle two near-new Spirit A320neos for parts.
KP Aviation is planning to disassemble five-to-six-year-old planes from an earlier tranche of bright-yellow Spirit aircraft that returned to the market in late 2025.
After engines, Butler said there is also appetite for auxiliary power units, landing gear and flight controls.
BANKRUPTCY COURT ACCELERATES SALEEarlier this week, Spirit Airlines received permission from a U.S. bankruptcy court to accelerate its liquidation plan, including expedited sales of aircraft.
Spirit’s fleet totals as of May included 114 Airbus A320‑family aircraft, of which 66 are leased.
According to court filings, the carrier has 17 GTF engines which are owned by lessors. Lessors also own about 30 planes with GTF engines, according to a court filing.
However, these planes will not hit the market for at least a few months, Butler said, as the lessors compile technical information about the assets.
Reporting by Allison Lampert in Montreal and Doyinsola Oladipo in New York; Additional reporting by Dietrich Knauth in New York; Editing by Matthew Lewis
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Julian Richardson worked as a flight attendant for Spirit Airlines for about eight years. He was shocked to hear about Spirit's shutdown, despite hearing rumors of it for years.
Why airlines can't crack down on this shameless line-skipping hack By You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
: Jim West/UCG/Universal Images Group via Getty Images Some travelers have found a shameless travel "hack" to skip airport lines: Request a wheelchair to board the plane, then walk off at the destination.
This phenomenon of so-called "miracle flights" — where able-bodied travelers ask for a wheelchair to cut security and boarding lines — blurs the line between legitimate disability accommodations and abusing the system.
Earlier this month, during an interview with the Boston public radio station WBUR's "Breakfast Club," JetBlue CEO Joanna Geraghty said US law requires airlines to provide wheelchair assistance to passengers who request it at the airport. Airlines generally cannot ask questions beyond logistics or clarity about the assistance request.
However, she said there is a "group of folks that use wheelchairs to get to the front of the line, and not for legitimate reasons."
The CEO's comments drew attention to the long-running "miracle flight" tension in air travel that others in aviation say has become all too common in the US and lacks an easy solution.
"We have certain flights that have 23 to 25 customers with wheelchairs, and, frankly, nobody wants to try to address some of those challenges because it's a very tough situation to navigate, both politically, but also just heart," Geraghty said.
Not all disabilities are visible, and passengers do not need to use a wheelchair full time to request assistance at the airport. But doing so to bypass airport lines shortchanges people with real mobility issues.
So how do airlines and airport staff police the increasing demands for disability accommodations without unfairly scrutinizing passengers with legitimate — and often invisible — disabilities?
Michele Erwin, the founder and president of the advocacy nonprofit All Wheels Up, told Business Insider that there are few solutions.
She said she's seen firsthand how airlines discuss the abuse behind the scenes and are doing their best to tackle it within the law, but there is virtually no way to verify who does or does not have a disability without asking for legally protected information.
She added that each wheelchair push is an expense for the airlines, so they lose money every time someone abuses the system: "It's not great for either side; we're all living in a gray area."
Airlines handle thousands of wheelchairs a day across their networks, and adding fake requests can worsen service. Bloomberg/Getty Images Industry leaders have called out the misuse for years. Former Frontier Airlines CEO Barry Biffle said in 2024 that the ultra-low-cost airline was seeing a "massive, rampant abuse" of special services. He said it costs $30 to $35 per wheelchair request.
The ex-CEO of London's Heathrow Airport similarly said in 2022 that some travelers were using wheelchair assistance to "fast-track" through airports after seeing it recommended on TikTok.
Several reports say Southwest's former open-seating system — where boarding order was determined by check-in time — may have incentivized some passengers to request wheelchair assistance in order to secure a better seat.
However, Erwin warned that efforts to police abuse could actually risk creating new problems for passengers who rely on wheelchairs, especially for reasons not related to mobility.
For example, she said some people who board with a wheelchair but then walk off the plane may be mobile but need help navigating a big, unfamiliar airport. Or they may be someone who has been flying for 24 hours across time zones and is simply exhausted.
So, she said, referring to these individuals as having experienced a medical miracle in-flight ignores the broader context.
Retired Delta captain Mark Stephens told Business Insider that he's aware wheelchair abuse happens, but similarly warned people should not start questioning anyone in the airport using one, on the off chance that they might be lying.
"Many people are disabled with things we cannot see," he said.
Flying with a disability is already tricky enoughThe wheelchair abuse — and potential backfiring of trying to police it — is on top of a system that is already hard enough for people with disabilities.
Geraghty acknowledged the shortfalls during the interview, saying, "In general, I don't think the airline industry does a great job with our customers with disabilities."
Transportation Department data shows that there were about 43,500 disability-related complaints among all US airlines in 2024.
More than half of the complaints were about failure to provide wheelchair service, such as insufficient staff or leaving someone behind. This may be partly due to the increase in wheelchair abuse, which takes workers away from those who truly need assistance.
: Jim West/UCG/Universal Images Group via Getty Images But Erwin said part of the problem also stems from travelers not notifying the airline in advance that they will need wheelchair assistance.
She said airports can sometimes be overwhelmed by unexpected last-minute wheelchair requests, leaving staff stretched too thin and resulting in slower or worse service. "That's where All Wheels Up comes in," Erwin said. "To educate the community."
Passengers can typically request a wheelchair during the booking process or add it later. The airlines are responsible for providing disability access services, but the assistants who perform these duties on their behalf are usually employed by third-party contractors.
Geraghty similarly said that more opportunities to pre-plan would be helpful: "If we could isolate out the folks who truly needed help, I think we could do a far, far, far better job with it."
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Stock Market Finds Rocket Fuel From Trump Canceling Iran Strikes; SpaceX Debut On Deck
Two AI Titans Flash Entries As Rocket Lab Readies For Launch Oil prices retreated on Wednesday morning and airline stocks took off as markets seemed to conclude that a near-term opening of the Strait of Hormuz is very likely. That confidence is persisting, despite the White House dismissing terms of a 14-point U.S.-Iran deal framework that was broadcast on Iranian television as a "complete fabrication." Further, tensions flared up over the…
The airline’s first aircraft honoring an international destination, the vibrant, community-selected design honors Dominican culture and JetBlue’s deep-rooted connection to the country
SANTO DOMINGO, Dominican Republic--(BUSINESS WIRE)--JetBlue (Nasdaq: JBLU), the largest airline serving the Dominican Republic, today unveiled Quisqueya la Bluebella at Santo Domingo’s Las Américas International Airport (SDQ), a vibrant new aircraft livery celebrating Dominican pride and a major milestone for the airline. The newly designed Airbus A320 honors the country’s rich culture and JetBlue’s deep connection to the Dominican community. Created by Dominican artist Willy Gómez, the design was chosen by the public earlier this year.
The name Quisqueya la Bluebella is a playful nod to the beloved patriotic phrase “Quisqueya la Bella,” reimagined with JetBlue’s signature flair. The design was introduced during a celebratory event in Santo Domingo, where customers, community members, local leaders, and JetBlue crewmembers gathered to celebrate Dominican culture and see the aircraft up close.
“When we flew to Santiago for the first time in 2004, we started building a connection with the Dominican Republic that has only grown stronger over the last two decades,” said Marty St. George, JetBlue’s president. “Quisqueya la Bluebella truly celebrates the pride, the passion and the culture of the Dominican community that has been such an important part of JetBlue’s journey. We were blown away by Willy Gómez’s design and the heart he poured into it. It’s bold, beautiful, and impossible to miss. Seeing this aircraft take to the skies is really special for us, and I hope it stands as a reminder to this community of how proud we are to be a part of it.”
A tribute to Dominican culture, identity, and connection
Through Gómez’s artistic eye, the aircraft’s creative design is meant to capture the spirit of the Dominican Republic through color and movement. Flowing lines and dynamic shapes echo the rhythm of merengue and bachata, while vibrant tropical tones reflect its warmth, resilience and energy, bringing to life the essence of everyday Dominican life.
From the Dominican Republic to communities across JetBlue’s network, and among its many Dominican crewmembers, it stands as a powerful symbol of belonging and shared identity. The phrase “Tamo’ aquí” (“We’re here”), featured on the aircraft belly, reinforces JetBlue’s ongoing presence and commitment—both at home and abroad. Today, JetBlue is the largest airline serving the Dominican Republic, with service to Santo Domingo, Santiago, Punta Cana, and Puerto Plata.
Quisqueya la Bluebella features design elements including:
The dominoes game, a beloved part of everyday Dominican life Traditional musical instruments such as the tambora, güira, and accordion, representing the rhythm of merengue and bachata The Cigüa Palmera, the national bird, symbolizing Dominican identity Vibrant Dominican flowers that reflect the nation’s natural beauty The Alcázar de Colón, honoring the country’s rich history Palm trees and ocean waves, representing the Dominican Republic’s landscapes and coastal culture Contemporary street-art influences that highlight modern Dominican creativity “The design represents a graphic synthesis of Dominican identity, reflecting elements of its culture, climate, and wildlife; a combination of qualities dancing together, giving life and rhythm to our nation,” said Willy Gómez. “I feel incredibly proud to be able to represent Dominican culture through a project like this, as it serves as a bridge and inspiration between Dominicans and the rest of the world. For me, it represents a childhood dream come true.”
Elevating Dominican creativity through art
In January, JetBlue launched its RD Orgullo que Eleva (DR Pride That Lifts) campaign, inviting customers, fans and members of the public to help select a design that would celebrate the Dominican Republic through a special aircraft livery. The campaign featured three concepts created by Dominican artists, Gómez, Los Plebeyos, and Lena Tolkens, each offering their interpretation of the Dominican culture, with Gómez’s design selected by the community.
At the heart of the campaign was JetBlue’s commitment to amplify authentic voices and celebrate local talent. Extending this effort beyond the design, JetBlue partnered with Centro Educativo Hogar Andres Boca Chica ahead of the unveiling. Led by Gómez, the initiative engaged and inspired the next generation of Dominican creatives through the creation of a community mural, which was showcased at today’s unveiling event. As part of this initiative, JetBlue also made a donation to support the organization’s ongoing work in the community.
Deepening ties with the Dominican Republic and its diaspora
As a part of the communities it serves, this summer JetBlue will celebrate the Dominican Republic and its diaspora as an official sponsor of the Dominican Day Parade in New York City on August 9. A float inspired by the newly unveiled Quisqueya la Bluebella design will make a special appearance, bringing the celebration to one of the largest Dominican communities outside of the Dominican Republic.
This summer, JetBlue will operate an average of 45 daily flights to and from the Dominican Republic, strengthening connections between the country, the United States and the Caribbean. The airline offers the most routes between the Dominican Republic and the U.S. than any other carrier, reinforcing its position as the lead airline in the country.
Most recently, JetBlue announced additional daily flights from Fort Lauderdale to high-demand destinations, including Santo Domingo and Santiago, starting July 9, further expanding access and meeting growing travel demand. Beyond its network, JetBlue continues to invest in and support communities across the Dominican Republic through meaningful local partnerships, JetBlue Foundation grants, and meaningful local initiatives that help expand opportunities for schools and community programs across the country.
About JetBlue
JetBlue is New York's Hometown Airline® and a leading carrier in Boston, Fort Lauderdale-Hollywood, Los Angeles, Orlando, and San Juan. JetBlue carries customers to more than 100 destinations throughout the United States, Latin America, the Caribbean, Canada, and Europe. For more information and the best fares, visit jetblue.com.
JetBlue (Nasdaq: JBLU), the largest airline serving the Dominican Republic, today unveiled Quisqueya la Bluebella at Santo Domingo’s Las Américas International Airport (SDQ), a vibrant new aircraft livery celebrating Dominican pride and a major milestone for the airline. The newly designed Airbus A320 honors the country’s rich culture and JetBlue’s deep connection to the Dominican community. Created by Dominican artist Willy Gómez, the design was chosen by the public earlier this year.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260528991419/en/
Photo courtesy of JetBlue.
The name Quisqueya la Bluebella is a playful nod to the beloved patriotic phrase “Quisqueya la Bella,” reimagined with JetBlue’s signature flair. The design was introduced during a celebratory event in Santo Domingo, where customers, community members, local leaders, and JetBlue crewmembers gathered to celebrate Dominican culture and see the aircraft up close.
“When we flew to Santiago for the first time in 2004, we started building a connection with the Dominican Republic that has only grown stronger over the last two decades,” said Marty St. George, JetBlue’s president. “Quisqueya la Bluebella truly celebrates the pride, the passion and the culture of the Dominican community that has been such an important part of JetBlue’s journey. We were blown away by Willy Gómez’s design and the heart he poured into it. It’s bold, beautiful, and impossible to miss. Seeing this aircraft take to the skies is really special for us, and I hope it stands as a reminder to this community of how proud we are to be a part of it.”
A tribute to Dominican culture, identity, and connection
Through Gómez’s artistic eye, the aircraft’s creative design is meant to capture the spirit of the Dominican Republic through color and movement. Flowing lines and dynamic shapes echo the rhythm of merengue and bachata, while vibrant tropical tones reflect its warmth, resilience and energy, bringing to life the essence of everyday Dominican life.
From the Dominican Republic to communities across JetBlue’s network, and among its many Dominican crewmembers, it stands as a powerful symbol of belonging and shared identity. The phrase “Tamo’ aquí” (“We’re here”), featured on the aircraft belly, reinforces JetBlue’s ongoing presence and commitment—both at home and abroad. Today, JetBlue is the largest airline serving the Dominican Republic, with service to Santo Domingo, Santiago, Punta Cana, and Puerto Plata.
Quisqueya la Bluebella features design elements including:
The dominoes game, a beloved part of everyday Dominican life Traditional musical instruments such as the tambora, güira, and accordion, representing the rhythm of merengue and bachata The Cigüa Palmera, the national bird, symbolizing Dominican identity Vibrant Dominican flowers that reflect the nation’s natural beauty The Alcázar de Colón, honoring the country’s rich history Palm trees and ocean waves, representing the Dominican Republic’s landscapes and coastal culture Contemporary street-art influences that highlight modern Dominican creativity “The design represents a graphic synthesis of Dominican identity, reflecting elements of its culture, climate, and wildlife; a combination of qualities dancing together, giving life and rhythm to our nation,” said Willy Gómez. “I feel incredibly proud to be able to represent Dominican culture through a project like this, as it serves as a bridge and inspiration between Dominicans and the rest of the world. For me, it represents a childhood dream come true.”
Elevating Dominican creativity through art
In January, JetBlue launched its RD Orgullo que Eleva (DR Pride That Lifts) campaign, inviting customers, fans and members of the public to help select a design that would celebrate the Dominican Republic through a special aircraft livery. The campaign featured three concepts created by Dominican artists, Gómez, Los Plebeyos, and Lena Tolkens, each offering their interpretation of the Dominican culture, with Gómez’s design selected by the community.
At the heart of the campaign was JetBlue’s commitment to amplify authentic voices and celebrate local talent. Extending this effort beyond the design, JetBlue partnered with Centro Educativo Hogar Andres Boca Chica ahead of the unveiling. Led by Gómez, the initiative engaged and inspired the next generation of Dominican creatives through the creation of a community mural, which was showcased at today’s unveiling event. As part of this initiative, JetBlue also made a donation to support the organization’s ongoing work in the community.
Deepening ties with the Dominican Republic and its diaspora
As a part of the communities it serves, this summer JetBlue will celebrate the Dominican Republic and its diaspora as an official sponsor of the Dominican Day Parade in New York City on August 9. A float inspired by the newly unveiled Quisqueya la Bluebella design will make a special appearance, bringing the celebration to one of the largest Dominican communities outside of the Dominican Republic.
This summer, JetBlue will operate an average of 45 daily flights to and from the Dominican Republic, strengthening connections between the country, the United States and the Caribbean. The airline offers the most routes between the Dominican Republic and the U.S. than any other carrier, reinforcing its position as the lead airline in the country.
Most recently, JetBlue announced additional daily flights from Fort Lauderdale to high-demand destinations, including Santo Domingo and Santiago, starting July 9, further expanding access and meeting growing travel demand. Beyond its network, JetBlue continues to invest in and support communities across the Dominican Republic through meaningful local partnerships, JetBlue Foundation grants, and meaningful local initiatives that help expand opportunities for schools and community programs across the country.
About JetBlue
JetBlue is New York's Hometown Airline® and a leading carrier in Boston, Fort Lauderdale-Hollywood, Los Angeles, Orlando, and San Juan. JetBlue carries customers to more than 100 destinations throughout the United States, Latin America, the Caribbean, Canada, and Europe. For more information and the best fares, visit jetblue.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260528991419/en/
New route would further strengthen JetBlue’s leading position in Fort Lauderdale and support travel between the U.S. and Venezuela
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--JetBlue (NASDAQ: JBLU) today announced its intent to launch nonstop service between Fort Lauderdale-Hollywood International Airport (FLL) and Simón Bolívar International Airport (CCS) in Maiquetía, Venezuela, marking the airline’s first-ever service to Venezuela. The proposed route remains subject to receipt of government approval and completion of applicable processes to operate in Venezuela.
JetBlue plans to begin service before the end of the year, with tickets expected to go on sale in the coming months.
The new route will connect Caracas with JetBlue’s Fort Lauderdale focus city, a key gateway to the Caribbean and Latin America, where the airline offers customers an extensive network of destinations across the region. The service is expected to support strong demand from customers visiting friends and relatives, providing South Florida travelers with a convenient new nonstop option to Caracas and seamless connections across JetBlue’s broader network.
“Fort Lauderdale continues to serve as JetBlue’s gateway to the Caribbean and Latin America, and we believe there is meaningful opportunity to expand our presence in the region with planned service to Caracas,” said Dave Jehn, vice president, network planning and airline partnerships, JetBlue. “South Florida is home to a large Venezuelan community, and this new route would help connect families and loved ones with JetBlue’s competitive fares and award-winning service.”
JetBlue plans to operate the Caracas route using its Airbus A320 aircraft offering the airline's award-winning service, including fast, free, unlimited Fly-Fi®, seatback entertainment at every seat and complimentary snacks and drinks.1
Continued Growth in Fort Lauderdale
JetBlue continues to expand its presence in Fort Lauderdale, where the airline recently announced its largest-ever schedule from the airport, including 11 new destinations and additional flights on existing routes across the U.S., Latin America and the Caribbean. With nearly 130 daily departures expected this summer, Fort Lauderdale has become one of JetBlue’s largest and most important gateways.
The proposed Caracas service would build on that growth by giving South Florida’s Venezuelan community another convenient way to stay connected with family and loved ones, while also expanding access to JetBlue’s broader network across the Americas.
About JetBlue
JetBlue is New York's Hometown Airline®, and a leading carrier in Boston, Fort Lauderdale-Hollywood, Los Angeles, Orlando and San Juan. JetBlue carries customers to more than 100 destinations throughout the United States, Latin America, the Caribbean, Canada and Europe. For more information and the best fares, visit jetblue.com.
Fly-Fi® and live television are available on all JetBlue-operated flights. Availability and coverage area may vary by aircraft. Details on inflight wi-fi and entertainment: https://www.jetblue.com/flying-with-us. More News From JetBlue
A month has gone by since the last earnings report for JetBlue Airways (JBLU - Free Report) . Shares have added about 11.6% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is JetBlue due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
JBLU Q1 Earnings Miss EstimateJetBlue Airways Corporation reported a wider-than-expected loss in first-quarter 2026. Revenues edged past the Zacks Consensus Estimate.
The company reported a loss of 87 cents per share, wider than the Zacks Consensus Estimate of a loss of 72 cents. In the year-ago quarter, JBLU reported a loss of 59 cents.
Meanwhile, the operating revenues of $2.24 billion beat the Zacks Consensus Estimate by 0.2%. Total revenues jumped 4.7% year over year, with passenger revenues accounting for 91.4% of the top line and increasing 4% to $2.05 billion, while beating our model estimate of $2.03 billion.
On a year-over-year basis, other revenues increased 12.5% to $192 million but missed our estimate of $206.7 million.
Other Details of JBLU’s Q1 Earnings
Revenues per available seat mile (RASM: a key measure of unit revenues) increased 6.5% year over year to $14.60, driven by resilient demand and solid execution in a challenging environment.
Passenger revenues per available seat mile increased 5.8% year over year to 13.35 cents. The average fare at JetBlue increased 3.2% year over year to $219.5. The yield per passenger mile rose 3.9% year over year.
Consolidated traffic (measured in revenue passenger miles) remained flat at $12.6 million on a year-over-year basis. Capacity (measured in available seat miles) fell 1.7% year over year. Consolidated load factor (percentage of seats filled by passengers) increased 1.5 percentage points to 82.2%. Our estimate for the load factor was 81.3%.
Total operating costs (on a reported basis) inched up 6.5% year over year to $2.46 billion. Expenses on aircraft fuel increased 12.1% year over year. Other operating expenses gained 9.9% year over year.
The average fuel price per gallon (including related taxes) was $2.96, up 15.2% year over year. JBLU’s operating expenses per available seat mile (CASM) increased 8.3% year over year. Excluding fuel, CASM rose 6.6% to $12.21.
JBLU’s Outlook
For second-quarter 2026, capacity is anticipated to increase in the band of 1.5-4.5% from second-quarter 2025 actuals. CASM, excluding fuel and special items, is predicted to climb in the range of 3-5%. Capital expenditures are expected to be approximately $275 million. RASM is forecasted to increase in the range of 7-11% from the second-quarter 2025 actuals. The average fuel cost per gallon is estimated to be between $4.13 and $4.28.
For 2026, capital expenditures are expected to be approximately $800 million.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -15.73% due to these changes.
VGM ScoresCurrently, JetBlue has a poor Growth Score of F, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, JetBlue has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerJetBlue belongs to the Zacks Transportation - Airline industry. Another stock from the same industry, SkyWest (SKYW - Free Report) , has gained 7.6% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
SkyWest reported revenues of $1.01 billion in the last reported quarter, representing a year-over-year change of +6.8%. EPS of $2.21 for the same period compares with $2.42 a year ago.
For the current quarter, SkyWest is expected to post earnings of $2.85 per share, indicating a change of -2.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.4% over the last 30 days.
SkyWest has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
Airline, hotel and other industry groups are urging the White House and top Trump administration officials to abandon a proposal that would cut off immigration processing at major airports, including Newark Liberty International Airport in New Jersey, a United Airlines hub.
United CEO Scott Kirby was set to discuss the proposal with Homeland Security Secretary Markwayne Mullin to convey the disruptions the policies could cause to travelers, according to two people familiar with the previously unreported call who spoke on condition of anonymity to talk about a private conversation.
Airlines for America, a trade association whose members include American Airlines, United Airlines and Delta Air Lines told White House officials this week that reducing Customs and Border Protection service at Newark, New Jersey's airport would "create havoc" for U.S. citizens, which make up the bulk of the 20,000 passengers flying in internationally to the airport, according to a document that was seen by CNBC.
The document also said that if there is a bottleneck at Newark, a major connecting hub, "disproportionate impacts to US citizens will hit heartland America far more than Newark itself." It also warned against the proposal, which could include impacts to other cities, and said it could curtail air cargo shipments.
Mullin said earlier this week on Fox News that the Trump administration was "drawing up plans" to potentially cut immigration and customs processing for international flights at U.S. airports in so-called "sanctuary cities," which the government says are more lenient on immigration policies.
Such a plan could be intended to pressure leaders of cities to crack down on undocumented immigrants by threatening to impede air travel.
The White House didn't immediately comment.
Mullin said in an interview on Fox News' "Hannity" on Tuesday night said that if "radical left Democrats" aren't allowing the government to "enforce federal laws ... we shouldn't be processing international flights into their cities either." He said the administration hasn't made a final plan or a decision on such a policy.
The Justice Department last August published a list of states and cities it said are impeding U.S. immigration policies, which include major international air hubs New York, Newark, Boston, Chicago, San Francisco, Los Angeles, Seattle and Philadelphia.
The proposal is being floated two weeks before the U.S., Canada and Mexico are set to host the FIFA Men's World Cup, but it isn't clear if the plan, if enacted, would take place before or during the tournament, which could derail travel for millions of people.
JetBlue Airways said it is seeing strong demand across all geographies, particularly for close-in travel and routes previously operated by Spirit following the budget airline's shutdown.
ToplineAirline stocks tumbled Monday as the industry continues to feel pressure from increasing jet fuel prices due to the Iran war, with JetBlue falling as much as 9% earlier after revising its second quarter outlook.
JetBlue’s stock price fell on Monday, before slightly recovering.
Getty Images
Key FactsIn a Securities and Exchange Commission filing on Monday, JetBlue raised its second quarter fuel cost guidance to $4.26-$4.36 per gallon—up from an expected $4.13-$4.28 listed in its previous guidance from April.
Jet fuel prices rose to about $142 per barrel in May, Reuters reported, up from $85-$90 per barrel before the U.S. and Israel began air strikes on Iran on Feb. 28.
JetBlue was down more than 5.1% to $5.18 a share as of around 3:15 p.m. EDT, recovering from a drop of more than 9% after markets opened.
Other airlines saw share prices drop—Delta Airlines was down about 1.3% around the same time, American fell about 1.8%, United tumbled 2.3%, and Alaska Airlines was down about 3%.
ContraDespite the rise in fuel prices, JetBlue said travel demand was “strong and consistent,” with positive trends “across all cabins and geographies.” The updated filing also noted the company was seeing “overperformance” on routes previously served by rival Spirit Airlines, which shut down in May. The company said it expected to “recapture 40% or more of increased fuel costs” in its second quarter.
Key BackgroundJetBlue suspended its full-year guidance in April, and announced it would slow hiring and raise airfare.
Key Takeaways JBLU plans nonstop Fort Lauderdale-Caracas service, marking its first entry into Venezuela. JetBlue aims to serve strong demand from South Florida's Venezuelan community. JBLU's Caracas route awaits regulatory approvals and operational clearances in Venezuela. JetBlue Airways’ (JBLU - Free Report) planned launch of nonstop service between Fort Lauderdale and Caracas, representing strategic expansion into a market with strong pent-up demand while marking the airline’s first-ever entry into Venezuela. The route would strengthen JBLU’s position in Latin America and the Caribbean. This would allow the carrier to tap into the large Venezuelan community in South Florida, where demand for visiting-friends-and-relatives travel remains significant.
The announcement also aligns with JetBlue’s broader growth strategy in Fort Lauderdale, which has become one of the airline’s most important gateways. The carrier recently unveiled its largest-ever schedule from the airport, including 11 new destinations and nearly 130 daily departures during the summer. By adding Caracas, JBLU continues to expand connectivity across the Americas while reinforcing Fort Lauderdale’s role as a key hub for its international network.
The proposed service comes as U.S. carriers gradually return to Venezuela following years of limited operations. JetBlue’s entry into the market could help diversify its international revenue base and strengthen its competitive position in South Florida, particularly as airlines seek growth opportunities in underserved Latin American routes. The use of Airbus A320 aircraft and JBLU’s customer-focused onboard offerings could further enhance its appeal among leisure and diaspora travelers.
However, the route remains subject to regulatory approvals and operational clearances in Venezuela, making the timeline dependent on government processes. If approved, the service would not only expand JetBlue’s geographic reach but also support its long-term strategy of allocating capacity toward higher-demand markets, with stronger connectivity and growth potential.
JBLU’s Share Price PerformanceJetBlue Airways’ shares have gained 19.9% in the past six months compared with the Transportation - Airline industry’s 5.6% growth.
Image Source: Zacks Investment Research
JBLU’s Zacks RankJBLU currently carries a Zacks Rank #3 (Hold).
Stocks to ConsiderInvestors interested in the Zacks Transportation sector may consider Expeditors International of Washington, Inc. (EXPD - Free Report) and International Seaways (INSW - Free Report) .
EXPD currently sports a Zacks Rank #1(Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Expeditors has an expected earnings growth rate of 11.9% for the current year. The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 13.96%.
INSW currently sports a Zacks Rank #1.
INSW has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 33.93%.
JetBlue CEO Joanna Geraghty speaks at the International Air Transport Association (IATA) on potential consolidation saying "never say never". -------- More on Bloomberg Television and Markets Like this video?
Airline stocks are trading lower across the board this Wednesday afternoon, but the more revealing story for investors is how dramatically the group has diverged in 2026.
New multi-year agreement underscores JetBlue’s longstanding commitment to South Florida with the debut of JetBlue Landing and enhanced fan experiences
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--JetBlue (Nasdaq: JBLU) today announced a new multi-year extension of its partnership with the Florida Panthers, reinforcing the airline’s position as a leading carrier in South Florida as it continues to grow at Fort Lauderdale-Hollywood International Airport (FLL). Beginning with the 2026–2027 NHL season, JetBlue will continue its role as the official airline of the Florida Panthers while becoming the presenting partner of the newly reimagined Champions Club at Amerant Bank Arena and debuting JetBlue Landing, a new fan destination designed to create memorable experiences for Panthers fans and JetBlue customers throughout the season.
The announcement comes as JetBlue continues expanding its presence across South Florida, including the recent addition of 11 new destinations and added frequencies on popular routes from Fort Lauderdale-Hollywood International Airport (FLL). Starting July 9, JetBlue will operate nearly 130 daily departures to more than 55 nonstop destinations from Fort Lauderdale. By the end of the year, JetBlue expects to offer more than 150 daily flights from FLL, and 34 daily departures from West Palm Beach, further strengthening the airline’s commitment to South Florida.
“As we continue to expand in Fort Lauderdale and welcome new customers across the region, growing our partnership with the Florida Panthers just feels right,” said Stephanie Evans Greene, JetBlue's senior vice president of marketing and brand. “The Florida Panthers organization understands what it means to show up for this community the way we do. This is about more than putting our names together. It’s about finding real ways to connect with fans and celebrate everything that makes South Florida unlike anywhere else.”
“We are proud to continue this storied partnership with a first-class organization like JetBlue,” said Michael White, president of business operations for the Florida Panthers. “As two organizations with deep roots in Broward County, we share a commitment to showing up for this community and creating exceptional experiences for the people who live here. JetBlue Landing will become a unique addition to the gameday experience and an exciting new way to engage our fans throughout the season.”
Introducing JetBlue Landing
Debuting for the 2026–2027 Florida Panthers season, JetBlue Landing will be a new fan destination at Amerant Bank Arena, offering exclusive events, unique experiences and special access opportunities throughout the season. Designed to enhance the fan experience both on gamedays and beyond, JetBlue Landing will feature special programming and new ways for fans to engage with the team. Additional details about JetBlue Landing will be announced ahead of the 2026–2027 season.
Investing in the South Florida Community
Beyond the arena, JetBlue and the Florida Panthers will continue supporting local communities through initiatives like the Reading Challenge program, which encourages Broward County Public School students to read daily for a chance to earn school pep rallies, mascot appearances and other experiences. During the program’s inaugural year, more than 2,600 students participated, logging more than 675,000 minutes read across 116 participating classrooms in Broward County.
About JetBlue
JetBlue is New York’s Hometown Airline® and a leading carrier in Boston, Fort Lauderdale-Hollywood, Los Angeles, Orlando, and San Juan. JetBlue carries customers to more than 100 destinations throughout the United States, Latin America, the Caribbean, Canada, and Europe. For more information and the best fares, visit jetblue.com.
About the Florida Panthers
The Florida Panthers are the National Hockey League’s southernmost team and captured the Stanley Cup in back-to-back seasons in 2023-24 and 2024-25. Entering their 33rd season in 2026-27, the Panthers operate four facilities in Broward County, Florida: Amerant Bank Arena in Sunrise, the Panthers IceDen in Coral Springs, the new state-of-the-art practice facility Baptist Health IcePlex in Fort Lauderdale, as well as the renovated War Memorial Auditorium, which hosts concerts and events for the South Florida faithful.
An organization with deep roots in the community, the Panthers are owned by Vincent J. Viola, a graduate of the United States Military Academy at West Point and a veteran of the U.S. Army. Emphasizing a culture of selfless service both on and off the ice, the Panthers pillar program ‘Heroes Among Us’ honors a United States military veteran at every game and the Florida Panthers Foundation has four main focuses including veterans affairs, children's health and education, raising awareness for the endangered Florida panther and growing youth hockey.
JetBlue (Nasdaq: JBLU) today announced a new multi-year extension of its partnership with the Florida Panthers, reinforcing the airline’s position as a leading carrier in South Florida as it continues to grow at Fort Lauderdale-Hollywood International Airport (FLL). Beginning with the 2026–2027 NHL season, JetBlue will continue its role as the official airline of the Florida Panthers while becoming the presenting partner of the newly reimagined Champions Club at Amerant Bank Arena and debuting JetBlue Landing, a new fan destination designed to create memorable experiences for Panthers fans and JetBlue customers throughout the season.
The announcement comes as JetBlue continues expanding its presence across South Florida, including the recent addition of 11 new destinations and added frequencies on popular routes from Fort Lauderdale-Hollywood International Airport (FLL). Starting July 9, JetBlue will operate nearly 130 daily departures to more than 55 nonstop destinations from Fort Lauderdale. By the end of the year, JetBlue expects to offer more than 150 daily flights from FLL, and 34 daily departures from West Palm Beach, further strengthening the airline’s commitment to South Florida.
“As we continue to expand in Fort Lauderdale and welcome new customers across the region, growing our partnership with the Florida Panthers just feels right,” said Stephanie Evans Greene, JetBlue's senior vice president of marketing and brand. “The Florida Panthers organization understands what it means to show up for this community the way we do. This is about more than putting our names together. It’s about finding real ways to connect with fans and celebrate everything that makes South Florida unlike anywhere else.”
“We are proud to continue this storied partnership with a first-class organization like JetBlue,” said Michael White, president of business operations for the Florida Panthers. “As two organizations with deep roots in Broward County, we share a commitment to showing up for this community and creating exceptional experiences for the people who live here. JetBlue Landing will become a unique addition to the gameday experience and an exciting new way to engage our fans throughout the season.”
Introducing JetBlue Landing
Debuting for the 2026–2027 Florida Panthers season, JetBlue Landing will be a new fan destination at Amerant Bank Arena, offering exclusive events, unique experiences and special access opportunities throughout the season. Designed to enhance the fan experience both on gamedays and beyond, JetBlue Landing will feature special programming and new ways for fans to engage with the team. Additional details about JetBlue Landing will be announced ahead of the 2026–2027 season.
Investing in the South Florida Community
Beyond the arena, JetBlue and the Florida Panthers will continue supporting local communities through initiatives like the Reading Challenge program, which encourages Broward County Public School students to read daily for a chance to earn school pep rallies, mascot appearances and other experiences. During the program’s inaugural year, more than 2,600 students participated, logging more than 675,000 minutes read across 116 participating classrooms in Broward County.
About JetBlue
JetBlue is New York’s Hometown Airline® and a leading carrier in Boston, Fort Lauderdale-Hollywood, Los Angeles, Orlando, and San Juan. JetBlue carries customers to more than 100 destinations throughout the United States, Latin America, the Caribbean, Canada, and Europe. For more information and the best fares, visit jetblue.com.
About the Florida Panthers
The Florida Panthers are the National Hockey League’s southernmost team and captured the Stanley Cup in back-to-back seasons in 2023-24 and 2024-25. Entering their 33rd season in 2026-27, the Panthers operate four facilities in Broward County, Florida: Amerant Bank Arena in Sunrise, the Panthers IceDen in Coral Springs, the new state-of-the-art practice facility Baptist Health IcePlex in Fort Lauderdale, as well as the renovated War Memorial Auditorium, which hosts concerts and events for the South Florida faithful.
An organization with deep roots in the community, the Panthers are owned by Vincent J. Viola, a graduate of the United States Military Academy at West Point and a veteran of the U.S. Army. Emphasizing a culture of selfless service both on and off the ice, the Panthers pillar program ‘Heroes Among Us’ honors a United States military veteran at every game and the Florida Panthers Foundation has four main focuses including veterans affairs, children's health and education, raising awareness for the endangered Florida panther and growing youth hockey.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260611824828/en/
Key Takeaways JetBlue extended its Florida Panthers deal, staying the official airline from the 2026-27 NHL season.JetBlue Landing will offer Panthers fans exclusive events, programming and team connections.JetBlue plans nearly 130 daily FLL departures from July 9 and aims to top 150 by year-end. In a bid to widen its popularity in terms of services and strengthen its position in South Florida as it continues to grow at Fort Lauderdale-Hollywood International Airport (FLL), JetBlue Airways (JBLU - Free Report) announced the multi-year extension of its partnership with the Florida Panthers.
Beginning with the 2026–2027 NHL season, JetBlue will remain the Panthers’ official airline while also becoming the presenting partner of the revamped Champions Club at Amerant Bank Arena. The agreement also introduces JetBlue Landing, a new fan-focused destination designed to offer exclusive experiences and engagement opportunities throughout the season.
The partnership expansion aligns with JetBlue’s consistent growth in the region. To this end, the airline has recently added 11 new destinations and increased service on several popular routes from FLL. Beginning July 9, JBLU will operate nearly 130 daily departures to more than 55 nonstop destinations from FLL, with plans to exceed 150 daily flights by the end of the year. JBLU also aims to provide 34 daily departures from West Palm Beach.
Set to launch ahead of the 2026–2027 season, JetBlue Landing will serve as a new gathering space at Amerant Bank Arena, featuring exclusive events, special programming and unique opportunities for fans to connect with the team both on game days and throughout the year. Additional details will be announced closer to the season.Top of FormBottom of Form
Stephanie Evans Greene, JetBlue's senior vice president of marketing and brand. “As we continue to expand in Fort Lauderdale and welcome new customers across the region, growing our partnership with the Florida Panthers just feels right,” said “The Florida Panthers organization understands what it means to show up for this community the way we do. This is about more than putting our names together. It’s about finding real ways to connect with fans and celebrate everything that makes South Florida unlike anywhere else.”
JBLU’s Zacks Rank and Stocks to ConsiderJBLU presently carries a Zacks Rank #3 (Hold).
Investors interested in the Zacks Transportation sector may consider International Seaways (INSW - Free Report) and Expeditors International of Washington, Inc. (EXPD - Free Report) .
INSW currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
INSW has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 33.93%.
EXPD currently carries a Zacks Rank #2 (Buy).
Expeditors has an expected earnings growth rate of 11.9% for the current year. The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 13.96%.
ISS Cites Compelling Strategic Rationale, Favorable Market Reaction, and Strong Institutional Confidence in Recommending Shareholders Vote FOR the Transaction Resolution
TORONTO--(BUSINESS WIRE)--Organigram Global Inc. (NASDAQ: OGI) (TSX: OGI), (the “Company” or “Organigram”), a leading licensed producer of cannabis, is pleased to announce that Institutional Shareholder Services Inc. ("ISS"), a leading independent proxy advisory firm, has recommended that holders of common shares of Organigram ("Shareholders") vote FOR the ordinary resolution (the "Transaction Resolution") to approve the indirect acquisition of Sanity Group GmbH ("Sanity") at the Company's Annual General and Special Meeting of Shareholders (the "Meeting") to be held on Monday, March 30, 2026, at 10:00 a.m. (Toronto time), at 333 Bay Street, Suite 3400, Toronto, Ontario.
For those Shareholders who are unable to attend the Meeting in person, the Company will make an audio-only telephone conference available for Shareholders to listen to the Meeting. No voting will occur on the audio conference. To join the audio-only telephone conference, Shareholders can dial (646) 307-1963 (from Toronto) or (800) 715-9871 (toll-free) and quote the following reference number: 96766. The registration URL for the audio-only telephone conference is https://registrations.events/direct/Q4I967660.
In its report dated March 14, 2026, ISS stated:
“The strategic rationale for the deal makes sense and the combined company should be able to harness benefits from increased scale, diversification, improved market presence, a stronger balance sheet, and cash flow generation. The connected financing being done at a meaningful premium by OGI’s largest shareholder signal strong institutional confidence and long‑term strategic alignment. The valuation appears credible, and the company has outperformed broad global…benchmark indices since the unaffected date and the announcement, suggesting elevated non-approval risk.”
In recommending that Shareholders vote FOR the Transaction Resolution, ISS specifically highlighted the following key factors:
Compelling Strategic Rationale: ISS concluded that the acquisition of Sanity positions the combined company to benefit from increased scale, meaningful geographic diversification, improved market presence, a stronger balance sheet, and enhanced cash flow generation. Strong Institutional Confidence: The connected private placement financing by a wholly owned subsidiary of British American Tobacco p.l.c. (“BAT”), Organigram’s largest shareholder, completed at a meaningful premium to market price, was cited by ISS as a signal of strong institutional confidence and long-term strategic alignment with the transaction. Credible Valuation: ISS found the valuation of Sanity to be credible, supported by an independent fairness opinion provided by BMO Nesbitt Burns Inc. confirming the consideration to be paid is fair, from a financial point of view, to Organigram. Positive Market Reaction: ISS noted that OGI shares rose on the day of announcement and had further increased as at March 11, 2026, meaningfully outperforming both the S&P/TSX Composite Index and the S&P/TSX Composite Pharmaceuticals Index over the same period. ISS indicated that this favorable market reaction suggests elevated risk if the transaction is not approved. Unanimous Board Support: The independent members of Organigram’s Board of Directors unanimously approved the transaction (with the interested directors abstaining from voting), having weighed the risks and benefits of the transaction against the Company’s standalone alternatives. About the Proposed Acquisition
Under the terms of the agreement, Sanity shareholders will receive a combination of cash and Organigram shares, with a deemed value of C$3.00 per share, as consideration for all outstanding Sanity shares not already held by Organigram, representing a 71.4% premium to the closing price of Organigram’s Common Shares on the TSX on the last unaffected trading date prior to announcement. The total upfront consideration is €113.4 million (comprising €80.0 million in cash and €33.4 million in Organigram shares). In addition, Sanity shareholders are entitled to receive contingent earn-out consideration of up to €113.8 million tied to Sanity’s financial performance in the 12-month period following closing.
Board Recommendation and Other Meeting Matters
The Board of Directors of Organigram unanimously (with the interested directors abstaining from voting) recommends that Shareholders vote FOR the Transaction Resolution. The Board consulted with its financial and legal advisors throughout the negotiation process and received a fairness opinion from BMO Nesbitt Burns Inc. confirming the fairness of the consideration paid under the share purchase agreement for the Transaction, from a financial point of view, to the Company.
At the Meeting, Shareholders will also be asked to vote on a number of other annual and special meeting matters, including: the election of ten director nominees to the Board; the appointment of PricewaterhouseCoopers LLP as the Company’s auditor; and the re-approval of all unallocated awards under the Company’s Omnibus Equity Incentive Plan. The Board recommends that Shareholders vote FOR each of the director nominees, FOR the appointment of PricewaterhouseCoopers LLP as auditor, and FOR the re-approval of all unallocated awards under the Company’s Omnibus Equity Incentive Plan.
YOUR VOTE IS IMPORTANT
Shareholders are encouraged to read the Management Information Circular dated February 23, 2026 (available on SEDAR+ at www.sedarplus.ca, on EDGAR at www.sec.gov and on the Company’s website) carefully and to vote their shares as soon as possible, and in any event, prior to the voting deadline of 10:00 a.m. (Toronto time) on Thursday, March 26, 2026.
Shareholders who have questions or need assistance with voting their shares should contact the Company’s proxy solicitation agent, Sodali & Co, by telephone at 1-833-830-8205 (North America) or 1-289-695-3075 (outside North America), or by email at [email protected].
About Organigram Global Inc.
Organigram Global Inc. is a NASDAQ Global Select Market and TSX listed company whose wholly owned subsidiary, Organigram Inc., is a licensed cultivator of cannabis and manufacturer of cannabis-derived goods in Canada. Through its acquisition of Collective Project Limited, Organigram Global participates in the U.S. and Canadian cannabinoid beverage markets. Organigram is focused on producing high-quality cannabis for adult consumers, as well as developing international business partnerships to extend the Company's global footprint. Organigram has also developed and acquired a portfolio of cannabis brands, including Edison, Big Bag O’ Buds, SHRED, SHRED’ems, Monjour, Tremblant Cannabis, Collective Project, Trailblazer, BOXHOT and DEBUNK. Organigram operates facilities in Moncton, New Brunswick and Lac Supérieur, Quebec, with a dedicated edibles manufacturing facility in Winnipeg, Manitoba. The Company also operates two additional cannabis processing facilities in Southwestern Ontario; one in Aylmer and the other in London. The facility in Aylmer houses best-in class CO2 and Hydrocarbon extraction capabilities, and is optimized for formulation refinement, post-processing of minor cannabinoids, and pre-roll production. The facility in London will be optimized for labelling, packaging, and national fulfillment. The Company is regulated by Health Canada under the Cannabis Act and the Cannabis Regulations (Canada).
About Sanity Group
Sanity Group aims to improve people’s quality of life through the use of cannabinoids and the utilization of the endocannabinoid system. The focus is on cannabinoid-based pharmaceuticals and consumer goods. To harness the full potential of cannabis, Sanity Group invests in research of the cannabis plant and its active ingredients as well as in specific areas of application. Sanity Group, co-founded in Berlin in 2018 by Finn Age Hänsel, includes Vayamed, avaay Medical and ZOIKS (medical cannabis), Endosane Pharmaceuticals (finished pharmaceuticals), vaay (lifestyle) and Grashaus Projects (recreational cannabis Swiss pilot project). Near Frankfurt am Main, Sanity Group also operates a logistics and production facility for cannabis pharmaceuticals. More information at sanitygroup.com/press.
Forward-Looking Information
This news release contains forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “estimates”, “intends”, “anticipates”, “believes” or variations of such words and phrases or state that certain actions, events, or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results, events, performance or achievements of Organigram to differ materially from current expectations or future results, performance or achievements expressed or implied by the forward-looking information contained in this news release. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information include changes to market conditions, consumer preferences and regulatory climate, and factors and risks as disclosed in the Circular, and the Company’s most recent annual information form, management’s discussion and analysis and other Company documents filed from time to time on SEDAR+ (see www.sedarplus.ca) and filed or furnished to the Securities and Exchange Commission on EDGAR (see www.sec.gov). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. Such assumptions include, without limitation, the receipt of the requisite approval of the Shareholders of the Transaction Resolution at the Meeting; the receipt of all required regulatory approvals, including final approval of the TSX,; the satisfaction or waiver of all conditions to closing of the Transaction; the completion of the Transaction on the terms contemplated by the share purchase agreement dated February 18, 2026 between the Company, Sanity and the shareholders of Sanity , the completion of the private placement financing with BAT on the terms contemplated by the subscription agreement dated February 18, 2026 between BAT and the Company; and the realization of the anticipated benefits of the Transaction within the expected time periods. The forward-looking information included in this news release is provided as of the date of this news release and the Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
TORONTO--(BUSINESS WIRE)--Organigram Global Inc. (NASDAQ: OGI) (TSX: OGI), (the “Company” or “Organigram”), is pleased to announce that the shareholders of Organigram have overwhelmingly approved the resolution required to consummate the previously announced acquisition by the Company (the “Transaction”) of Sanity Group GmbH (“Sanity Group”) and the related private placement financing (the “Private Placement”) with BT DE Investments Inc., a wholly-owned subsidiary of British American Tobacco (“BAT”) at the Company’s annual general and special meeting of shareholders (the “Shareholders”) held on March 30, 2026 (the “Meeting”).
Shareholders approved an ordinary resolution (the “Transaction Resolution”) authorizing (i) the indirect acquisition by the Company of all the issued and outstanding shares of Sanity Group not already owned by the Company, and (ii) the issuance by the Company of up to 96,287,602 common shares to the shareholders of Sanity Group and BAT in connection with the Transaction and the Private Placement, by an affirmative vote of 93% of the votes represented at the Meeting, excluding the votes attached to the Company’s common shares beneficially owned, or over which control or direction was exercised by BAT, its associates and affiliates and their respective directors and officers who held Organigram common shares as of the record date for the Meeting in accordance with the rules of the TSX Company Manual and Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions. The full text of the Transaction Resolution is set forth as “Appendix B” in the Company’s management information circular dated February 23, 2026 (the “Circular”) provided in connection with the Meeting.
Transaction Highlights
Financially accretive acquisition that is expected to bring scale and positively impact both revenue and profitability. Sanity generated positive EBITDA in 2025. Cements Organigram’s position as a leader in the growing global cannabis market. Organigram is currently #1 in the Canadian adult use recreational market, and on closing will become a top company in the rapidly growing German medical cannabis market, the second largest federally legal cannabis market in the world after Canada. Provides Organigram with a vertically integrated European ‘hub’ and footprint. Will add local leadership, a strong network of strategic partners throughout the value chain across Europe as well as commercial, operational, medical and regulatory expertise. Sanity Group operates Europe’s first two legal cannabis specialty stores as part of scientific pilot projects in Switzerland. Pilot project experience also enhances credibility for future pilot projects, including in Germany. Provides Organigram the opportunity to bring its industry leading brands and IP to new markets globally. The combination of both teams, with the support of the Product Development Collaboration (PDC) generated intellectual property, is expected to deliver a suite of next generation cannabis innovations, backed by science, to European medical markets. In addition to the shareholder approval obtained, the Transaction remains subject to the satisfaction of certain customary closing conditions for transactions of this nature, including the completion of the Private Placement and the ATB Financial senior secured credit facilities. The Company previously obtained foreign direct investment (FDI) clearance for the Transaction. Closing of the Transaction is expected to occur in April 2026.
In addition to the approval of the Transaction Resolution, the Shareholders approved all other matters presented for approval at the Meeting, as described in further detail below.
Election of Directors
Each of the ten nominees listed in the Circular were elected as directors of the Company. The Company received proxies and virtual votes at the Meeting as set out below:
Nominee
# Votes For
% of Votes
For
# Votes
Against
% of Votes
Against
Peter Amirault
49,413,277
98.6%
725,875
1.4%
James Yamanaka
49,488,063
98.7%
651,090
1.3%
Dexter John
49,474,313
98.7%
664,839
1.3%
Stephen Smith
49,404,097
98.5%
735,056
1.5%
Geoffrey Machum
49,388,232
98.5%
750,921
1.5%
Sherry Porter
49,448,299
98.6%
690,854
1.4%
Marni Wieshofer
49,393,604
98.5%
745,549
1.5%
Simon Ashton
49,292,856
98.3%
846,297
1.7%
Karina Gehring
49,352,986
98.4%
786,167
1.6%
Craig Harris
49,370,278
98.5%
768,874
1.5%
The biographies of the Company’s directors are set out in the Circular, which is available under the Company’s profile on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov.
Committee Composition
Following the Meeting, the Board has reviewed and approved the composition of its Committees which remain unchanged. The Investment Committee consists of Dexter John (Chair), Stephen Smith, Marni Wieshofer, Simon Ashton and Craig Harris. The Governance, Nominating and Sustainability Committee consists of Geoff Machum (Chair), Sherry Porter, Dexter John and Craig Harris. The Audit Committee consists of Stephen Smith (Chair), Dexter John, Marni Wieshofer and Simon Ashton and the Compensation Committee consists of Sherry Porter (Chair), Geoff Machum and Karina Gehring.
Appointment of Auditor
PricewaterhouseCoopers LLP was appointed as the auditor of the Company until the next annual meeting of the shareholders of the Company or until its successor is duly appointed, and the directors of the Company were authorized to fix the remuneration of such auditor by the affirmative vote of 97% of the votes represented at the Meeting.
Approval of Unallocated Awards under Long-Term Omnibus Equity Incentive Plan
Shareholders approved the ordinary resolution (the “Unallocated Awards Resolution”) authorizing all unallocated options, restricted share units, performance share units and deferred share units under the Company’s Long-Term Omnibus Equity Incentive Plan dated as of January 25, 2020 by the affirmative vote of 94% of the votes represented at the Meeting. The full text of the Unallocated Awards Resolution is set forth as “Appendix A” in the Circular.
Further Information
For further information regarding the Transaction, please refer to the Circular filed under the Company’s profile on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov.
About Organigram Global Inc.
Organigram Global Inc. is a NASDAQ Global Select Market and TSX listed company whose wholly owned subsidiary, Organigram Inc., is a licensed cultivator of cannabis and manufacturer of cannabis-derived goods in Canada. Through its acquisition of Collective Project Limited, Organigram Global participates in the U.S. and Canadian cannabinoid beverage markets. Organigram is focused on producing high-quality cannabis for adult consumers, as well as developing international business partnerships to extend the Company's global footprint. Organigram has also developed and acquired a portfolio of cannabis brands, including Edison, Big Bag O’ Buds, SHRED, SHRED’ems, Monjour, Tremblant Cannabis, Collective Project, Trailblazer, BOXHOT and DEBUNK. Organigram operates facilities in Moncton, New Brunswick and Lac Supérieur, Quebec, with a dedicated edibles manufacturing facility in Winnipeg, Manitoba. The Company also operates two additional cannabis processing facilities in Southwestern Ontario; one in Aylmer and the other in London. The facility in Aylmer houses best-in-class CO2 and Hydrocarbon extraction capabilities, and is optimized for formulation refinement, post-processing of minor cannabinoids, and pre-roll production. The facility in London will be optimized for labelling, packaging, and national fulfillment. The Company is regulated by Health Canada under the Cannabis Act and the Cannabis Regulations (Canada).
Forward-Looking Information
This news release contains forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “estimates”, “intends”, “anticipates”, “believes” or variations of such words and phrases or state that certain actions, events, or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking-statements. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results, events, performance or achievements of Organigram to differ materially from current expectations or future results, performance or achievements expressed or implied by the forward-looking information contained in this news release.
Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking statements reflect current beliefs of management of the Company with respect to future events and are based on information currently available to management including the reasonable assumptions, estimates, analysis and opinions of management of the Company considering their experience, perception of trends, current conditions and expected developments as well as other factors that management believes to be relevant as at the date such statements are made. Forward-looking statements involve significant known and unknown risks and uncertainties. Many factors could cause actual results, performance or achievement to be materially different from any future forward-looking statements. There is a risk that some or all the expected benefits of the Transaction may fail to materialize or may not occur within the time periods anticipated by the Company. The challenge of coordinating previously independent businesses makes evaluating the business and future financial prospects of the Company following the business combination difficult. Material risks and uncertainties that could cause actual results to differ from forward-looking statements include the inherent uncertainty associated with the financial and other projections a well as market changes arising from Canadian and European governmental actions or market conditions; satisfaction or waiver of all conditions to closing of the Transaction; completion of the Transaction and Private Placement on the terms contemplated in their governing agreements, as applicable; the prompt and effective integration of Sanity into the Company not being possible; the ability to achieve the anticipated synergies and value-creation contemplated by the business combination not being possible or being delayed; the response of business partners and retention as a result of the business combination being negative; the impact of competitive responses to the business combination negatively impacting the Company; the ability to achieve the expected manufacturing and production output including flower supply not being possible; and the diversion of management time on business combination-related issues. Readers are cautioned that the foregoing list of factors is not exhaustive. Other risks and uncertainties not presently known to the Company or that the Company presently believe are not material could also cause actual results or events to differ materially from those expressed in the forward-looking statements contained herein. For a more detailed discussion of risks and other factors, see the factors and risks disclosed in the Circular, the Company’s most recent annual information form, management’s discussion and analysis and other Company documents filed from time to time on SEDAR+ (see www.sedarplus.ca) and filed or furnished to the Securities and Exchange Commission on EDGAR (see www.sec.gov). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, and no assurance can be given that such events will occur in the disclosed time frames or at all. The forward-looking information included in this news release are made as of the date of this news release and the Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
TORONTO & BERLIN--(BUSINESS WIRE)--Organigram Global Inc. (NASDAQ: OGI) (TSX: OGI), (the “Company” or “Organigram”) and Sanity Group GmbH (“Sanity” or “Sanity Group”) jointly announced the successful closing of Organigram’s previously announced acquisition (the “Acquisition”) of Sanity Group, pursuant to the terms of a share purchase agreement dated February 18, 2026 (the “Share Purchase Agreement”). In connection with closing of the Acquisition, a wholly owned subsidiary of the Company acquired all of the issued and outstanding shares of Sanity Group not already owned by the Company for an upfront purchase price paid on closing of €107.3 million, consisting of €78.0 million in cash and €29.3 million in share consideration (the “Upfront Consideration”). In connection with the closing of the Acquisition, the Company also closed its previously announced private placement financing (the “Private Placement”) with BT DE Investments Inc. (“BAT”), a wholly owned subsidiary of British American Tobacco p.l.c.1, for total gross proceeds of €40.3 million (equal to C$65.2 million)2, and its previously announced senior secured credit facilities (the “Loan Facilities”) of up to C$60 million.
The Company is also pleased to announce that, in connection with the closing of the Acquisition, Mr. Max Konrad Narr has been appointed to the Company’s board of directors for the duration of the Earnout Period (as defined below).
A portion of the cash component of the Upfront Consideration payable in connection with the Acquisition was funded using an amount drawn from Organigram’s Jupiter strategic investment pool (the “Jupiter Pool”), a capital pool established in 2024 with funding from BAT to support international growth initiatives. The use of such funds in connection with the Acquisition represents the final deployment of the Jupiter Pool.
About Sanity Group
Sanity Group is one of Europe’s leading pure-play cannabis companies, headquartered in Germany with a scalable European platform and expanding operations in Switzerland, the United Kingdom, Poland and Czechia. Sanity has developed a diversified and sophisticated commercial footprint across key segments of the cannabis value chain, including medical cannabis, regulated recreational pilot programs, and wellbeing products. Sanity benefits from deep regulatory expertise, strong distribution and logistics capabilities, and an extensive network of strategic partners across Europe.
Structuring of Consideration and Earnout under the Share Purchase Agreement
The Upfront Consideration paid on closing consisted of €78.0 million in cash3 and €29.3 million in share consideration, which was satisfied by Organigram issuing 3,146,195 common shares in the capital of the Company (the “Common Shares”) to the former shareholders of Sanity (the “Sellers”) and 12,638,228 non-voting Class A convertible preferred shares in the capital of the Company to BAT (the “Preferred Shares”, and together with the Common Shares, the “Shares”) at a price per Share of €1.8547 (C$3.00). The Upfront Consideration is based on estimated cash, debt and working capital of Sanity Group and is subject to post closing adjustment. In addition to the Upfront Consideration, the Sellers are entitled to future earnout consideration of up to €113.8 million, consisting of up to €20.0 million in cash, and up to €93.8 million in Shares, to be priced based on the volume-weighted average price of the Company’s Common Shares on the Toronto Stock Exchange (the “TSX”) for the twenty trading days on which there was a closing price for the Common Shares immediately preceding the settlement of such Shares, subject to a C$3.00 floor and C$4.00 cap (the “Earnout Consideration”), dependent on Sanity Group’s financial performance during the 12-month period ended April 1, 2027 (the “Earnout Period”).
ATB Credit Facility
In connection with the Acquisition and concurrently with the closing of the Acquisition, the Company closed the previously announced Loan Facilities between the Company, as borrower, ATB Financial as administrative agent, sole lead arranger and bookrunner, and the lenders party thereto from time to time (the “Credit Agreement”).
The Loan Facilities consist of a (i) C$20 million non-revolving term facility; (ii) C$30 million revolving credit facility; and (iii) C$10 million operating facility. The Loan Facilities are secured by assets of the Company and its material subsidiaries.
The proceeds of the non-revolving term loan have been used to partially fund the Acquisition. The revolving credit facility may be used to fund any earn out obligations in connection with the Acquisition and to finance working capital requirements and for general corporate purposes. The operating facility will be used to finance working capital requirements and for general corporate purposes.
Pursuant to the agreed conditions of the Loan Facilities, the Company has initially drawn C$20 million of the term loan on closing at the Prime Rate (as defined in the Credit Agreement). The Loan Facilities will mature on April 14, 2029 and the Company may, at its discretion, repay the balance of the Facilities without penalty, at any time (subject to the applicable notice requirements under the Credit Agreement). The Credit Agreement includes customary positive and negative covenants and events of default or loans of similar type, including financial covenants.
Private Placement with BAT
In connection with the Acquisition and concurrently with the closing of the Acquisition, the Company closed its previously announced Private Placement with BAT. Pursuant to closing of the Private Placement, BAT acquired, on a private placement basis, 1,152,800 Common Shares and 12,874,274 Preferred Shares of the Company at a price of C$3.00 per Share for gross proceeds of C$42.08 million, and 9,897,356 Preferred Shares of the Company at a price of C$2.335854 per Share, pursuant to the exercise of certain existing top-up rights, for gross proceeds of C$23.12 million, for total gross proceeds of €40,287,080 (equal to C$65.2 million)4 (the “Private Placement Subscription Proceeds”) pursuant to the terms of a subscription agreement dated February 18, 2026 (the “Subscription Agreement”). The Private Placement Subscription Proceeds were used to finance the cash portion of the Upfront Consideration and certain related transaction expenses of the Company.
Pursuant to the terms of the Subscription Agreement, the Shares issued in the closing of the Private Placement were allocated between Common Shares and Preferred Shares, such that if the number of Common Shares owned by BAT or its affiliates, associates, related parties and any joint actors would have exceeded the 30% Threshold after the closing of the Private Placement, the Company issued to BAT the greatest number of Common Shares issuable pursuant to the closing without exceeding the 30% Threshold, with the remainder of the Shares issuable as Preferred Shares (all as more specifically set forth in the Subscription Agreement).
The Preferred Shares are non-voting convertible preferred shares of the Company convertible at the option of BAT without payment of any additional consideration (subject to the 30% Threshold). The Preferred Shares are convertible initially on a one-for-one basis into Common Shares; provided, however, that the conversion rate will increase at a rate of 7.5% per annum commencing from the initial date on which such Preferred Shares are issued, until such time as the holders of Preferred Shares would beneficially own, or exercise control or direction over, directly or indirectly, with their respective affiliates, associates, related parties and any joint actors, after giving effect to the conversion of the Preferred Shares, 49.0% of the aggregate number of Common Shares issued and outstanding.
Amended and Restated Investor Rights Agreement
In connection with the closing of the Private Placement, the Company and BAT entered into a second amended and restated investor rights agreement (the “Second Amended & Restated IRA”), which further amends and restates the prior investor rights agreement dated January 23, 2024 between the Company and BAT to, among other things, provide increased flexibility concerning debt financing transactions by Organigram and refresh the time periods with respect to certain provisions. A copy of the Second Amended & Restated IRA will be available under the Company’s profile on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov.
Advisors and Counsel
In connection with the Acquisition, the Company engaged EY for financial and tax advisory work, and BMO Capital Markets to provide a fairness opinion in respect the consideration to be paid by the Company pursuant to the Share Purchase Agreement. Goodmans LLP acted as Canadian legal counsel to the Company in connection with the Acquisition, the Loan Facilities and the Private Placement. Hogan Lovells International LLP acted as German legal counsel to the Company on the Acquisition, and McMillan LLP acted as U.S. legal counsel to the Company in connection with the Acquisition.
Sanity Group engaged its former Managing Director and Chief Investment & Strategy Officer, Max Narr, to support the management of the Acquisition, and Rothschild & Co acted as its exclusive financial advisor. Katharina Erbe (RSR / Season 5) and Patrick Biagosch (Biagosch Partner) acted as German legal counsel to Sanity Group, and McMillan LLP acted as Canadian legal counsel to Sanity Group. Stikeman Elliott LLP acted as Canadian legal counsel to BAT in connection with the Private Placement.
Additional Information Regarding the Acquisition, Private Placement and Loan Facilities
For additional details on the Acquisition and the Private Placement, see the Management Information Circular dated February 23, 2026, the Share Purchase Agreement for the Acquisition and the Subscription Agreement for the Private Placement, copies of which are available on the Company’s profile on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov. For additional details on the Loan Facilities, see the Loan Facilities, a copy of which is available on the Company’s profile on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov.
About Organigram Global Inc.
Organigram Global Inc. is a NASDAQ Global Select Market and TSX listed company whose wholly owned subsidiary, Organigram Inc., is a licensed cultivator of cannabis and manufacturer of cannabis-derived goods in Canada. Through its acquisition of Collective Project Limited, Organigram Global participates in the U.S. and Canadian cannabinoid beverage markets. Organigram is focused on producing high-quality cannabis for adult consumers, as well as developing international business partnerships to extend the Company's global footprint. Organigram has also developed and acquired a portfolio of cannabis brands, including Edison, Big Bag O’ Buds, SHRED, SHRED’ems, Monjour, Tremblant Cannabis, Collective Project, Trailblazer, BOXHOT and DEBUNK. Organigram operates facilities in Moncton, New Brunswick and Lac Supérieur, Quebec, with a dedicated edibles manufacturing facility in Winnipeg, Manitoba. The Company also operates two additional cannabis processing facilities in Southwestern Ontario; one in Aylmer and the other in London. The facility in Aylmer houses best-in-class CO2 and Hydrocarbon extraction capabilities, and is optimized for formulation refinement, post-processing of minor cannabinoids, and pre-roll production. The facility in London will be optimized for labelling, packaging, and national fulfillment. The Company is regulated by Health Canada under the Cannabis Act and the Cannabis Regulations (Canada).
Forward-Looking Information
This news release contains forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “estimates”, “intends”, “anticipates”, “believes” or variations of such words and phrases or state that certain actions, events, or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking-statements. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results, events, performance or achievements of Organigram to differ materially from current expectations or future results, performance or achievements expressed or implied by the forward-looking information contained in this news release.
Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking statements reflect current beliefs of management of the Company with respect to future events and are based on information currently available to management including the reasonable assumptions, estimates, analysis and opinions of management of the Company considering their experience, perception of trends, current conditions and expected developments as well as other factors that management believes to be relevant as at the date such statements are made. Forward-looking statements involve significant known and unknown risks and uncertainties. Many factors could cause actual results, performance or achievement to be materially different from any future forward-looking statements. There is a risk that some or all the expected benefits of the Acquisition may fail to materialize or may not occur within the time periods anticipated by the Company. The challenge of coordinating previously independent businesses makes evaluating the business and future financial prospects of the Company following the business combination difficult. Material risks and uncertainties that could cause actual results to differ from forward-looking statements include the inherent uncertainty associated with the financial and other projections (including projections relating to revenue, EBITDA, valuation and the calculation of the Earnout Consideration) as well as market changes arising from Canadian and European governmental actions or market conditions; the prompt and effective integration of Sanity into the Company not being possible; the ability to achieve the anticipated synergies and value-creation contemplated by the business combination not being possible or being delayed; the response of business partners and retention as a result of the business combination being negative; the impact of competitive responses to the business combination negatively impacting the Company; the ability to achieve the expected manufacturing and production output including flower supply not being possible; the risk that Sanity may not achieve the financial performance thresholds required for the payment of some or all of the Earnout Consideration; and the diversion of management time on business combination-related issues. Readers are cautioned that the foregoing list of factors is not exhaustive. Other risks and uncertainties not presently known to the Company or that the Company presently believe are not material could also cause actual results or events to differ materially from those expressed in the forward-looking statements contained herein. For a more detailed discussion of risks and other factors, see the factors and risks disclosed in the Company’s most recent annual information form, management’s discussion and analysis and other Company documents filed from time to time on SEDAR+ (see www.sedarplus.ca) and filed or furnished to the Securities and Exchange Commission on EDGAR (see www.sec.gov). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, and no assurance can be given that such events will occur in the disclosed time frames or at all. The forward-looking information included in this news release are made as of the date of this news release and the Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
1 BAT (as defined below) is a shareholder in both Organigram and Sanity and has opted to take Shares in Organigram in lieu of cash for its interest in Sanity.
2 As determined using the average daily exchange rate published by the Bank of Canada on April 8, 2026 for converting Canadian dollars into Euros, being CAD$1.00 equals €0.6179.
3 BAT (as defined below) is a shareholder in both Organigram and Sanity and has opted to take Shares in Organigram in lieu of cash for its interest in Sanity.
4 As determined using the average daily exchange rate published by the Bank of Canada on April 8, 2026 for converting Canadian dollars into Euros, being CAD$1.00 equals €0.6179.
TORONTO--(BUSINESS WIRE)--Organigram Global Inc. (NASDAQ: OGI) (TSX: OGI), (the “Company” or “Organigram”), Canada's #1 cannabis company by market share, announced today it will report earnings results for its second quarter fiscal 2026 ended March 31, 2026, on Tuesday, May 12, 2026, prior to market open.
The Company will host a conference call to discuss its results with details as follows:
Date: Tuesday, May 12, 2026
Time: 8:00 am Eastern Time
To register for the conference call, please use this link:
https://events.q4inc.com/analyst/574618022?pwd=FVnom6fM
To ensure you are connected for the full call, we suggest registering a day in advance or at minimum 10 minutes before the start of the call. After registering, a confirmation will be sent through email, including dial in details and unique conference call codes for entry. Registration is open through the live call.
To access the webcast:
https://events.q4inc.com/attendee/574618022
Participants will receive their details via email.
A replay of the webcast will be available within 24 hours after the conclusion of the call at https://www.organigram.ca/investors and will be archived for a period of 90 days following the call.
About Organigram
Organigram Global Inc. is a NASDAQ Global Select Market and TSX listed company whose wholly owned subsidiaries include Organigram Inc., a licensed cultivator and processor. Through its acquisition of Collective Project Limited, Organigram Global participates in the US and Canadian cannabinoid beverages markets.
Organigram is focused on producing high-quality cannabis for adult consumers, as well as developing international business partnerships to extend the Company's global footprint. Organigram has also developed and acquired a portfolio of cannabis brands, including Edison, Big Bag O’ Buds, SHRED, Monjour, Tremblant, Collective Project, Trailblazer, BOXHOT and DEBUNK. Organigram operates facilities in Moncton, New Brunswick and Lac Supérieur, Quebec, with a dedicated edibles manufacturing facility in Winnipeg, Manitoba. The Company also operates two additional cannabis processing facilities in Southwestern Ontario; one in Aylmer and the other in London. The facility in Aylmer houses best-in-class extraction capabilities, and is optimized for formulation refinement, post-processing of minor cannabinoids, and infused pre-roll production. The facility in London will be optimized for labelling, packaging, and national fulfillment. The Company is regulated by Health Canada under the Cannabis Act and the Cannabis Regulations.
Forward-Looking Information
This news release contains forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “estimates”, “intends”, “anticipates”, “believes” or variations of such words and phrases or state that certain actions, events, or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking information including expectations regarding market performance, involves known and unknown risks, uncertainties and other factors that may cause actual results, events, performance or achievements of Organigram Global to differ materially from current expectations or future results, performance or achievements expressed or implied by the forward-looking information contained in this news release. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information include factors and risks disclosed in the Company’s most recent annual information form, management’s discussion and analysis, and other Company documents filed from time to time on SEDAR+ (see www.sedarplus.ca) and filed or furnished to the Securities and Exchange Commission on EDGAR (see www.sec.gov). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. The forward-looking information included in this news release are made as of the date of this news release and the Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
TORONTO--(BUSINESS WIRE)--Organigram Global Inc. (NASDAQ: OGI) (TSX: OGI), (the “Company” or “Organigram”), Canada's #1 cannabis company by market share1, is pleased to announce its results for the second quarter ended March 31, 2026 (“Q2 Fiscal 2026” or "Q2").
Q2 FISCAL 2026 HIGHLIGHTS
Gross Revenue: $93.3 million (-9% year-over-year). Net Revenue: $59.8 million (-9% year-over-year). International Revenue: $6.1 million (0% year-over-year). Adjusted EBITDA2: $0.9 million (-82% year-over-year). #1 Market Share in Canada: #1 in vapes, #1 in milled flower, #1 in concentrates, #2 in flower, #2 in pre-rolls, #3 in edibles, and #5 in beverages1. Sanity Group GmbH (“Sanity Group”) Acquisition: Subsequent to quarter-end, Organigram completed its acquisition of one of Germany's cannabis leaders, Sanity Group. Sanity Group is expected to generate approximately €25 million in average quarterly revenue over the next calendar year, and provide a scalable platform to accelerate Organigram's growth across key European markets. Australia Branded Sales: Launched 10 vape and gummy SKUs in Australia under the BOXHOT and Edison brands, with products expected to be available to over 4,000 pharmacies. Record Yield and Potency: Achieved a record quarterly harvest of over 32,000 kg (+56% year-over-year) and the highest average THC potency across the Company's flagship Moncton facility compared to any prior quarter due to continued enhancements to cultivation practices. Plant Science: Advancing Organigram's recent achievements in early-stage genetic marker identification, the Company launched two powdery mildew resistant cultivars and continues progress toward the identification of other genetic traits including, but not limited to aroma, color, terpene expression, and disease resistance. “Q2 reflected our underperformance in vapes and temporary challenges in infused pre-roll production, compounded by slower industry growth,” said James Yamanaka, CEO of Organigram. “We acted quickly to address these issues, and the operational changes and product enhancements we have implemented are already beginning to stabilize performance. Combined with continued improvements in yields and flower potency, and the contribution from Sanity Group beginning in Q3, we believe the business is positioned for stronger execution and improved performance in the second half of fiscal 2026.”
SECOND QUARTER FISCAL 2026 FINANCIAL OVERVIEW
Net revenue: Net Revenue decreased 9% to $59.8 million, from $65.6 million in the second quarter ended March 31, 2025 (“Q2 Fiscal 2025”), primarily driven by lower vape and infused pre-roll sales. Adjusted gross margin2: Adjusted gross margin was $18.4 million, or 31% of net revenue, compared to $21.9 million, or 33%, in Q2 Fiscal 2025. The year-over-year decrease in adjusted gross margin was primarily driven by changes in product mix, including a lower proportion of higher-margin product categories in the current period, and higher product returns. Selling, General & Administrative (“SG&A”) Expenses: SG&A increased to $23.6 million from $22.5 million in Q2 Fiscal 2025. The increase was primarily driven by higher investments in advertising, promotions, and trade marketing initiatives to support new product launches in the current period, and a credit loss due to a wholesale customer insolvency. As a proportion of net revenue, SG&A increased to 39%, compared to 34% in Q2 Fiscal 2025. Net Income or loss: Net loss was $0.9 million compared to net income of $42.5 million in Q2 Fiscal 2025. The decrease in net income in the current period was primarily attributable to lower fair value gains on derivative liabilities and preferred shares, as well as lower net revenue and gross margins compared to the prior year period. In addition, the current period results were negatively impacted by a $5.8 million impairment loss related to the Company's hemp-derived products business in the U.S. Adjusted EBITDA3: Adjusted EBITDA was $0.9 million compared to $4.9 million in adjusted EBITDA in Q2 Fiscal 2025. The decrease in Adjusted EBITDA compared to the comparative period is primarily due to lower recreational revenue while operating expenses remained flat as a proportion of net revenue, as well as the impact of higher returns provisions. Net Cash used in Operating Activities: Cash used in operating activities was $6.8 million, compared to $16.6 million in Q2 Fiscal 2025. The improvement was primarily attributable to lower investment in working capital, partially offset by lower adjusted EBITDA3. Free Cash Flow (“FCF”)3: FCF was an outflow of $7.0 million compared to $23.1 million in Q2 Fiscal 2025. The improvement was primarily attributable to lower investment in working capital and lower capital expenditures. “The financial impact of the competitive and operational challenges encountered earlier in Fiscal 2026 is believed to have been largely realized in the first half of the year, and we are now beginning to see performance stabilize,” said Greg Guyatt, Chief Financial Officer of Organigram. “While margins and profitability were pressured during the quarter, the underlying cost structure of the business continues to improve, supported by higher yields, operational efficiencies, and prior investments in automation. We expect to resume our trajectory of margin expansion and profitability improvement through the second half of the year, supported by expected growth in net revenue and international sales, alongside positive contributions from the consolidation of Sanity Group.”
INTERNATIONAL SALES
In Q2 Fiscal 2026, Organigram generated $6.1 million in international sales, consistent with the prior year period. Performance reflected an elevated proportion of product that did not meet international specifications during the quarter. Sequentially, international sales increased from $5.0 million in Q1 Fiscal 2026, driven by improving on-spec volumes. The Company expects continued progress in international on-spec volumes through the second half of Fiscal 2026. In April 2026 Organigram provided all additional documentation requested by the regulator to date to support the closure of all major findings identified in its EU-GMP certification audit. The Company expects an update on certification in the coming months. BALANCE SHEET & LIQUIDITY
As of March 31, 2026, the Company had total cash (including restricted cash and short-term investments) of $54.8 million. Subsequent to quarter end, the Company deployed the majority of its total cash position in consideration of the Sanity Group acquisition and secured $60 million in debt financing from ATB Financial of which $20 million was allocated to the Sanity Group acquisition. FISCAL 2026 GUIDANCE
The Company originally issued its Fiscal 2026 guidance in Q4 Fiscal 2025, prior to the acquisition of Sanity Group, which closed in April 2026. At that time, the Company contemplated net revenue exceeding $300 million, higher Adjusted Gross Margin4 and Adjusted EBITDA4 relative to Fiscal 2025, positive Free Cash Flow4, and capital expenditures of less than $10 million. Following the acquisition of Sanity Group, which closed in April 2026, the Company is updating its Fiscal 2026 guidance. Prior to the acquisition, shipments to Sanity Group were recognized as revenue upon shipment to Sanity Group; post-acquisition, shipments to Sanity Group are recognized as revenue upon ultimate sale by Sanity Group to third parties. The Company is now projecting net revenue to exceed $350 million in Fiscal 2026, with Adjusted EBITDA4 and Adjusted Gross Margin4 exceeding Fiscal 2025 performance, Free Cash Flow4 approximately break even, and capital expenditures of less than $10 million. Select Key Financial Metrics
(in $000s unless otherwise indicated)
Q2-2026
Q2-2025
% Change
Gross revenue
93,250
102,763
(9
)%
Excise taxes
(33,456
)
(37,163
)
(10
)%
Net revenue
59,794
65,600
(9
)%
Cost of sales
44,800
45,813
(2
)%
Gross margin before fair value changes to biological assets & inventories sold
14,994
19,787
(24
)%
Realized fair value on inventories sold and other inventory charges
(21,834
)
(14,192
)
54
%
Unrealized gain on changes in fair value of biological assets
23,247
12,823
81
%
Gross margin
16,407
18,418
(11
)%
Adjusted gross margin(1)
18,441
21,921
(16
)%
Adjusted gross margin %(1)
31
%
33
%
(2
)%
Selling (including marketing), general & administrative expenses
23,609
22,490
5
%
Net (loss) income
(921
)
42,456
nm
Adjusted EBITDA(1)
870
4,908
(82
)%
Net cash used in operating activities before working capital changes
(6,211
)
(1,607
)
286
%
Net cash used in operating activities after working capital changes
(6,760
)
(16,585
)
(59
)%
Note (1) Adjusted gross margin, adjusted gross margin % and adjusted EBITDA are non-International Financial Reporting Standards (“IFRS”) financial measures not defined by and do not have any standardized meaning under IFRS and might not be comparable to similar financial measures disclosed by other issuers; please refer to “Non-IFRS Financial Measures” in this press release for more information.
The following table reconciles the Company's adjusted EBITDA to net income (loss).
Adjusted EBITDA Reconciliation
(in $000s unless otherwise indicated)
Q2-2026
Q2-2025
Net (loss) income as reported
$
(921
)
$
42,456
Add/(deduct):
Investment income, net of financing costs
(312
)
(179
)
Income tax expense (recovery)
—
(106
)
Depreciation and amortization
5,033
4,839
Impairment of property, plant and equipment, intangible assets and goodwill
5,800
—
ERP implementation costs
120
628
Acquisition and transaction costs
4,356
974
Inventory and biological assets fair value and NRV adjustments
2,034
1,917
Incremental fair value component on inventories sold from acquisitions
—
1,586
Share-based compensation
728
938
Other (income) expenses(1)
(18,716
)
(50,728
)
Provision for non-recurring credit losses
821
—
Research and development expenditures, net of depreciation
1,927
2,583
Adjusted EBITDA
$
870
$
4,908
Note (1): Other (income) expenses includes share of loss from investments in associates, (gain) loss on disposal of property, plant and equipment, change in fair value of derivative liabilities, preferred shares, contingent consideration and other financial assets, and certain other non-operating (income) expenses.
The following table reconciles the Company's adjusted gross margin to gross margin before fair value adjustments:
Adjusted Gross Margin Reconciliation
(in $000s unless otherwise indicated)
Q2-2026
Q2-2025
Net revenue
$
59,794
$
65,600
Cost of sales before adjustments
41,353
43,679
Adjusted gross margin
18,441
21,921
Adjusted gross margin %
31
%
33
%
Less:
Provisions and impairment of inventories and biological assets
3,420
548
Provisions to net realizable value
27
—
Gross margin before fair value adjustments
14,994
19,787
Gross margin % (before fair value adjustments)
25
%
30
%
Add:
Realized fair value on inventories sold and other inventory charges
(21,834
)
(14,192
)
Unrealized gain on changes in fair value of biological assets
23,247
12,823
Gross margin
16,407
18,418
Gross margin %
27
%
28
%
The following table reconciles the Company's Free Cash Flow to net cash and restricted cash provided by (used in) operating activities:
Free Cash Flow Reconciliation
(in $000s unless otherwise indicated)
Q2-2026
Q2-2025
Net cash and restricted cash provided by (used in) operating activities
$
(6,760
)
$
(16,585
)
Less:
Purchase of property, plant and equipment
(223
)
(6,508
)
Free Cash Flow
(6,983
)
(23,093
)
Second Quarter Fiscal 2026 Conference Call
The Company will host a conference call to discuss its results with details as follows:
Date: May 12, 2026
Time: 8:00 am Eastern Time
To register for the conference call, please use this link: https://events.q4inc.com/analyst/574618022?pwd=FVnom6fM
To ensure you are connected for the full call, we suggest registering a day in advance or at minimum 10 minutes before the start of the call. After registering, a confirmation will be sent through email, including dial in details and unique conference call codes for entry. Registration is open through the live call.
To access the webcast: https://events.q4inc.com/attendee/574618022
A replay of the webcast will be available within 24 hours after the conclusion of the call at https://www.organigram.ca/investors and will be archived for a period of 90 days following the call.
Non-IFRS Financial Measures
This news release refers to certain financial performance measures (including adjusted gross margin, adjusted gross margin %, adjusted EBITDA and free cash flow) that are not defined by and do not have a standardized meaning under IFRS as issued by the International Accounting Standards Board. Non-IFRS financial measures are used by management to assess the financial and operational performance of the Company. The Company believes that these non-IFRS financial measures, in addition to conventional measures prepared in accordance with IFRS, enable investors to evaluate the Company’s operating results, underlying performance and prospects in a similar manner to the Company’s management. As there are no standardized methods of calculating these non-IFRS measures, the Company’s approaches may differ from those used by others, and accordingly, the use of these measures may not be directly comparable. Accordingly, these non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Adjusted EBITDA is a non-IFRS measure that the Company defines as net income (loss) excluding: financing costs, net of investment income; income tax expense (recovery); depreciation, amortization, impairment, normalization of depreciation add-back due to changes in depreciable assets resulting from impairment charges, (gain) loss on disposal of property, plant and equipment (per the consolidated statement of cash flows); share-based compensation (per the consolidated statement of cash flows); share of loss (gain) from investments in associates including impairment loss; change in fair value of contingent consideration; change in fair value of derivative liabilities, other financial assets and preferred shares; expenditures incurred in connection with research and development activities (net of depreciation); unrealized gain on changes in fair value of biological assets; realized fair value on inventories sold and other inventory charges; provisions and net realizable value adjustments related to inventory and biological assets; government subsidies, insurance recoveries and other non-operating expenses (income); legal provisions (recoveries); ERP implementation costs; transaction costs; share issuance costs; and provision for Canndoc expected credit losses. Adjusted EBITDA is intended to provide a proxy for the Company’s operating cash flow and derives expectations of future financial performance for the Company, and excludes adjustments that are not reflective of current operating results.
Adjusted gross margin is a non-IFRS measure that the Company defines as net revenue less cost of sales, before the effects of (i) unrealized gain on changes in fair value of biological assets; (ii) realized fair value on inventories sold and other inventory charges; (iii) realized fair value on inventories sold from acquisitions; (iv) provisions and impairment of inventories and biological assets; and (v) provisions to net realizable value. Adjusted gross margin % is calculated by dividing adjusted gross margin by net revenue. Management believes that these measures provide useful information to assess the profitability of our operations as they represent the normalized gross margin generated from operations and exclude the effects of non-cash fair value adjustments on inventories and biological assets, which are required by IFRS.
Free cash flow provided by (used in) operating activities is calculated as net cash provided by or used in operating activities less the purchase of property, plant and equipment. Free cash flow is a useful indicator of the Company's capacity to fund operations from internally generated cash flows, without the need for additional borrowings or use of existing cash reserves under normal operating conditions.
The most directly comparable measure to adjusted EBITDA, calculated in accordance with IFRS is net income (loss) and see "Reconciliation" section of this press release for a reconciliation to such measure. The most directly comparable measure to adjusted gross margin calculated in accordance with IFRS is gross margin before fair value adjustment and see "Reconciliation" section of this press release for a reconciliation to such measure. The most directly comparable measure to Free Cash Flow is net cash and restricted cash provided by (used in) operating activities, and see "Reconciliation" section of this press release for a reconciliation to such measure.
About Organigram Global Inc.
Organigram Global Inc. is a NASDAQ Global Select Market and TSX listed company whose wholly-owned subsidiaries include Organigram Inc., a licensed cultivator of cannabis and manufacturer of cannabis-derived goods in Canada. Through its acquisition of Collective Project Limited, Organigram Global participates in the U.S. and Canadian cannabinoid beverages markets.
Organigram is focused on producing high-quality, indoor-grown cannabis for patients and adult recreational consumers in Canada, as well as developing international business partnerships to extend the Company’s global footprint. Organigram has also developed a portfolio of legal adult-use recreational cannabis brands, including Edison, Holy Mountain, Big Bag O’ Buds, SHRED, SHRED'ems, Monjour, Tremblant Cannabis, Trailblazer, Collective Project, BOXHOT and DEBUNK. Organigram operates facilities in Moncton, New Brunswick and Lac-Supérieur, Québec, with a dedicated manufacturing facility in Winnipeg, Manitoba. The Company also operates two additional cannabis processing facilities in Southwestern Ontario; one in Aylmer and the other in London. The facility in Aylmer houses best-in-class CO2 and Hydrocarbon extraction capabilities, and is optimized for formulation refinement, post-processing of minor cannabinoids, and pre-roll production. The facility in London will be optimized for labelling, packaging, and national fulfillment. The Company is regulated by the Cannabis Act and the Cannabis Regulations (Canada).
Forward-Looking Information
This news release contains forward-looking information. Forward-looking information, in general, can be identified by the use of forward-looking terminology such as “outlook”, “objective”, “may”, “will”, “could”, “would”, “might”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “plan”, “continue”, “budget”, “schedule” or “forecast” or similar expressions suggesting future outcomes or events. They include, but are not limited to, statements with respect to expectations, projections or other characterizations of future events or circumstances, and the Company’s objectives, goals, strategies, beliefs, intentions, plans, estimates, forecasts, projections and outlook, including statements relating to the Company’s future performance, the Company’s positioning to capture additional market share and sales including international sales and the expected continued progress in international on-spec volumes, expectations for consumer demand, expected improvement to gross margins before fair value changes to biological assets and inventories, expectations regarding adjusted gross margins, adjusted EBITDA, Free Cash Flow and net revenue in Fiscal 2026 and beyond, expectations regarding cultivation capacity, the Company’s plans and objectives including around the availability and sources of any future financing, availability of cost efficiency opportunities, the ability of the Company to fulfill demand for its revitalized product portfolio with increased staffing, expectations relating to greater capacity to meet demand due to increased capacity at the Company’s facilities, expectations around lower product cultivation costs, the ability to achieve economies of scale and ramp up cultivation, expectations pertaining to the increase of automation and reduction in reliance on manual labour, expectations around the launch of higher margin dried flower strains, expectations around market and consumer demand and other patterns related to existing, new and planned product forms; expectations regarding the Company's integration of Sanity Group, including the expected revenue to be generated by Sanity Group over the next calendar year; expectations around FASTTM nanoemulsion technology; expectations regarding EU-GMP certification; timing for launch of new product forms, ability of those new product forms to capture sales and market share, estimates around incremental sales and more generally estimates or predictions of actions of customers, suppliers, partners, distributors, competitors or regulatory authorities; statements regarding the future of the Canadian and international cannabis markets and, statements regarding the Company’s future economic performance. These statements are not historical facts but instead represent management beliefs regarding future events, many of which, by their nature are inherently uncertain and beyond management control. Forward-looking information has been based on the Company’s current expectations about future events.
Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectations. These risks, uncertainties and factors include: general economic factors; geopolitical risks; international trade disputes sparked by tariffs and retaliatory tariffs or other non-tariff measures; changes to government laws, regulations or policies, including customs, tariffs, trade or environmental law, regulations or policies, or the enforcement thereof; receipt of regulatory approvals or consents and any conditions imposed upon same and the timing thereof; the Company's ability to meet regulatory criteria which may be subject to change; change in regulation including restrictions on sale of new product forms; change in stock exchange listing practices; the Company's ability to manage costs, timing and conditions to receiving any required testing results and certifications; results of final testing of new products; changes in governmental plans including those related to methods of distribution; timing and nature of sales and product returns; customer buying patterns and consumer preferences not being as predicted given this is a new and emerging market; material weaknesses identified in the Company’s internal controls over financial reporting; the completion of regulatory processes and registrations including for new products and forms; market demand and acceptance of new products and forms; unforeseen construction or delivery delays including of equipment and commissioning; increases to expected costs; competitive and industry conditions; change in customer buying patterns; and changes in crop yields. These and other risk factors are disclosed in the Company's documents filed from time to time under the Company’s issuer profile on the Canadian Securities Administrators’ System for Electronic Document Analysis and Retrieval+ (“SEDAR”) at www.sedarplus.ca and reports and other information filed with or furnished to the United States Securities and Exchange Commission (“SEC”) from time to time on the SEC’s Electronic Document Gathering and Retrieval System (“EDGAR”) at www.sec.gov, including the Company’s most recent management discussion and analysis ("MD&A") and annual information form. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release.
Certain forward-looking information included herein may also constitute a “financial outlook” within the meaning of applicable securities legislation. Financial outlook involves statements about the Company’s prospective financial performance and financial position that are based on and subject to the assumptions about future economic conditions and courses of action described above as well as management's expectations regarding a strong innovation pipeline, increasing international sales, high cannabis quality and higher potency, commercialization of FAST nano emulsion technology in ingestible formats, and receipt of the EU-GMP certification. Such assumptions are based on management's assessment of the relevant information currently available and any financial outlook included herein is provided for the purpose of helping readers understand management's current expectations and plans for the future as of the date hereof. The actual results of the Company’s operations may vary from the amounts set forth in any financial outlook and such variances may be material. Readers are cautioned that reliance on any financial outlook may not be appropriate for other purposes or in other circumstances and that the risk factors described above and other factors may cause actual results to differ materially from any financial outlook.
The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward looking information is subject to risks and uncertainties that are addressed in the “Risk Factors” section of the MD&A dated May 12, 2026 and there can be no assurance whatsoever that these events will occur.
Third-Party Information
This news release contains information concerning our industry and the markets in which we operate, including our market position and market share, which is based on information from independent third-party sources. Although we believe these sources to be generally reliable, market and industry data is inherently imprecise, subject to interpretation and cannot be verified with complete certainty due to limits on the availability and reliability of raw data, the voluntary nature of the data gathering process, and other limitations and uncertainties inherent in any statistical survey or data collection process. We have not independently verified any third-party information contained herein.
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OrganiGram (OGI - Free Report) came out with a quarterly loss of $0.01 per share in line with the Zacks Consensus Estimate. This compares to a loss of $0.05 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -100.00%. A quarter ago, it was expected that this cannabis producer would post a loss of $0.01 per share when it actually produced a loss of $0.02, delivering a surprise of -100%.
Over the last four quarters, the company has not been able to surpass consensus EPS estimates.
OrganiGram, which belongs to the Zacks Medical - Products industry, posted revenues of $43.59 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 16.26%. This compares to year-ago revenues of $45.69 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
OrganiGram shares have lost about 22% since the beginning of the year versus the S&P 500's gain of 8.3%.
What's Next for OrganiGram?While OrganiGram has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for OrganiGram was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.01 on $58.38 million in revenues for the coming quarter and $0.10 on $235.25 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Products is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Medtronic (MDT - Free Report) , another stock in the same industry, has yet to report results for the quarter ended April 2026. The results are expected to be released on June 3.
This medical device company is expected to post quarterly earnings of $1.58 per share in its upcoming report, which represents a year-over-year change of -2.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Medtronic's revenues are expected to be $9.66 billion, up 8.2% from the year-ago quarter.
Though the Canadian cannabis producer said operational changes and its recent acquisition of Germany-based Sanity Group position the company for stronger performance in the second half of the year.
• Organigram Global shares are sliding. Why are OGI shares down?
Organigram Q2 Revenue Falls As Vape Sales And Margins WeakenThe company reported a second-quarter loss of one cent, with sales of $43.59 million, missing the consensus of $52.06 million.
Adjusted EBITDA fell 82% to $0.9 million.
CEO James Yamanaka said the quarter reflected underperformance in vapes and temporary production issues in infused pre-rolls, alongside slower industry growth.
"We acted quickly to address these issues, and the operational changes and product enhancements we have implemented are already beginning to stabilize performance," Yamanaka said.
Margin Pressure and Net Loss Impact ResultsOrganigram reported an adjusted gross margin of $18.4 million, or 31% of net revenue, down from 33% a year earlier. The decline was tied to changes in product mix and higher product returns.
Sanity Group Deal Expected To Support GrowthOrganigram completed its acquisition of Germany-based Sanity Group GmbH, which it expects will generate roughly 25 million euros in average quarterly revenue over the next year.
CFO Greg Guyatt said the financial impact from earlier operational and competitive challenges was "largely realized" in the first half of fiscal 2026.
Organigram Raises Fiscal 2026 Revenue OutlookFollowing the Sanity Group acquisition, Organigram raised its fiscal 2026 guidance and now expects net revenue to exceed $350 million, up from its prior forecast of more than $300 million. Analysts expect sales of $341.45 million.
The company also expects adjusted gross margin and adjusted EBITDA to exceed fiscal 2025 levels, while projecting free cash flow to be approximately break-even.
OGI Price Action: Organigram Global shares were down 14.12% at $1.13 at the time of publication on Tuesday, according to Benzinga Pro. Over the past month, OGI has declined about 20.2% versus a 8.3% rise in the S&P 500 and is down roughly 33% year-to-date compared to the index’s 7% gain.
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Organigram's disappointing Q2 earnings could be a direct result of its record harvests overwhelming downstream capacity. Expected Sanity contribution to full-year revenue and adjusted EBITDA guidance suggests that organic growth may turn negative in the second half of FY 2026. Persistent out-of-spec exports point to a severe bottleneck in drying capacity, where overcrowded drying rooms are fostering microbial growth and driving inconsistent drying.
