A Spirit Airways Airbus A320 taxis at Los Angeles Worldwide Airport after arriving from Boston on September 1, 2024 in Los Angeles, California.
Kevin Carter | Getty Photographs Information | Getty Photographs
Spirit Airways has warned it may not have the ability to survive as a going concern if it does not increase more money, 5 months after the budget-travel icon emerged from chapter.
After reducing its debt throughout restructuring, Spirit has tried to draw bookings by advertising extra upscale merchandise and on the lookout for new methods to chop prices. Late final month, the airline introduced plans to furlough 270 extra pilots this fall.
“Nonetheless, the Firm has continued to be affected by adversarial market circumstances, together with elevated home capability and continued weak demand for home leisure journey within the second quarter of 2025, leading to a difficult pricing surroundings,” the corporate mentioned in its quarterly report late Monday.
As its monetary outcomes aren’t bettering on the similar tempo collectors agreements require, Spirit will want extra money. Failing to take action may lead to defaults. The service is promoting some plane, actual property or airport gates, it mentioned.
“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 mentioned within the submitting.
Spirit’s chapter final yr marked the primary of a significant U.S. airline since 2011.
Identified for its bright-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 yr, shifting shopper tastes to extra upmarket merchandise and an engine recall that grounded a lot of its airplanes.
