A Spirit Airlines Airbus A320 taxis at Los Angeles International Airport after arriving from Boston on September 1, 2024 in Los Angeles, California.
Kevin Carter | Getty Images News | Getty Images
Spirit Airlines has warned it might not be able to survive as a going concern if it would not elevate more cash, 5 months after the price range journey icon emerged from bankruptcy.
After reducing its debt throughout restructuring, Spirit has tried to appeal to bookings by advertising and marketing more upscale merchandise and searching for new methods to decrease prices. Late final month, the airline introduced plans to furlough 270 more pilots this fall.
“However, the Company has continued to be affected by adverse market conditions, including elevated domestic capacity and continued weak demand for domestic leisure travel in the second quarter of 2025, resulting in a challenging pricing environment,” the corporate stated in its quarterly report late Monday.
As its monetary outcomes aren’t bettering on the identical tempo collectors agreements require, Spirit will want further cash. Failing to achieve this may end in defaults. The service is taking a look at promoting some plane, actual property or airport gates, it stated.
“Because of the uncertainty of successfully completing the initiatives to comply with the minimum liquidity covenants and of the outcome of discussions with Company stakeholders, management has concluded there is substantial doubt as to the Company’s ability to continue as a going concern within 12 months from the date these financial statements are issued,” it stated within the submitting.
Spirit’s chapter final 12 months marked the primary for a serious U.S. airline since 2011.
Known for its vivid yellow planes, Spirit was a price range airline pioneer within the U.S., however struggled within the wake of a failed acquisition by JetBlue Airways final 12 months, shifting client tastes to more upmarket merchandise and an engine recall that grounded a lot of its airplanes.