Spirit Airways warns it won’t have the ability to survive with out additional cash

Spirit Airways has warned it won’t have the ability to survive as a going concern if it would not elevate additional cash, 5 months after the funds journey icon emerged from chapter.

After slicing its debt throughout restructuring, Spirit has tried to draw bookings by advertising extra upscale merchandise and searching for new methods to decrease prices. Late final month, the airline introduced plans to furlough 270 extra pilots this fall.

“Nevertheless, the Firm has continued to be affected by hostile market situations, together with elevated home capability and continued weak demand for home leisure journey within the second quarter of 2025, leading to a difficult pricing atmosphere,” the corporate stated in its quarterly report late Monday.

As its monetary outcomes aren’t bettering on the similar tempo collectors agreements require, Spirit will want more money. Failing to take action might end in defaults. The provider is promoting some plane, actual property or airport gates, it stated.

“Due to the uncertainty of efficiently finishing the initiatives to adjust to the minimal liquidity covenants and of the result of discussions with Firm stakeholders, administration has concluded there may be substantial doubt as to the Firm’s potential to proceed as a going concern inside 12 months from the date these monetary statements are issued,” it stated within the submitting.

Spirit’s chapter final 12 months marked the primary for a significant U.S. airline since 2011.

Recognized for its brilliant yellow planes, Spirit was a funds 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 extra upmarket merchandise and an engine recall that grounded lots of its airplanes.