{"id":140085,"date":"2025-08-12T16:21:13","date_gmt":"2025-08-12T16:21:13","guid":{"rendered":"https:\/\/www.europesays.com\/us\/140085\/"},"modified":"2025-08-12T16:21:13","modified_gmt":"2025-08-12T16:21:13","slug":"spirit-airlines-sounds-the-alarm-on-its-future-ability-to-stay-in-business","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/140085\/","title":{"rendered":"Spirit Airlines sounds the alarm on its future ability to stay in business"},"content":{"rendered":"\n

NEW YORK (AP) \u2014 Just months after emerging from Chapter 11 bankruptcy<\/a>, Spirit Airlines is warning about its future ability to stay in business.<\/p>\n

Spirit Aviation Holdings (FLYY<\/a>), the budget carrier’s parent company, says it has \u201csubstantial doubt\u201d about its ability to continue as a going concern within the next year \u2014 which is accounting-speak for having the resources needed to sustain operations. In a quarterly report issued on Monday, Spirit pointed to \u201cadverse market conditions” that it’s continued to face despite recent restructuring and other efforts to revamp offerings.<\/p>\n

That includes weak demand for domestic leisure travel, which Spirit said persisted in the second quarter of its fiscal year \u2014 among other challenges and \u201cuncertainties in its business operations\u201d that the Florida-based company expects to continue \u201cfor at least the remainder of 2025.\u201d<\/p>\n

Known for its no-frills, low-cost flights<\/a> on a fleet of bright yellow planes, Spirit has struggled to bounce back to profitability and boost resources to compete with rivals since the COVID-19 pandemic. Rising operation costs and mounting debt eventually led the company to seek bankruptcy protection<\/a> in November. By the time of that Chapter 11 filing, the airline had lost more than $2.5 billion since the start of 2020.<\/p>\n

When Spirit emerged from bankruptcy protection in March, the company successfully restructured some of its looming debt obligations and secured new financing for future operations. Spirit has continued to make other cost-cutting efforts since \u2014 including plans to furlough about 270 pilots and downgrade some 140 captains to first officers in the coming months.<\/p>\n

Those furloughs and downgrades, both announced in July, are set to go into effect Oct. 1 and Nov. 1 to align with Spirit’s \u201cprojected flight volume for 2026,\u201d the company noted in its quarterly report. They also follow previous furloughs<\/a> and job cuts<\/a> taken before the company’s bankruptcy filing last year.<\/p>\n

Despite these and other cost-cutting efforts, Spirit on Monday stressed that it needs more liquidity. As a result, the company said it may also sell certain aircraft and real estate.<\/p>\n

Spirit’s aircraft fleet is relatively young, which has made the airline an attractive takeover target over the years. But such buyout attempts from budget rivals like JetBlue<\/a> and Frontier<\/a> were unsuccessful both before and during<\/a> the bankruptcy process.<\/p>\n

Spirit’s shares tumbled more than 40% Tuesday morning, with the company’s stock trading at just over $1.80 as of around 11 a.m. ET.<\/p>\n","protected":false},"excerpt":{"rendered":"NEW YORK (AP) \u2014 Just months after emerging from Chapter 11 bankruptcy, Spirit Airlines is warning about its…\n","protected":false},"author":3,"featured_media":140086,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[50892,64,28970,83715,51712,83713,83714,67,132,68],"class_list":{"0":"post-140085","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-bankruptcy-filing","9":"tag-business","10":"tag-chapter-11-bankruptcy","11":"tag-future-operations","12":"tag-parent-company","13":"tag-spirit-airlines","14":"tag-spirit-aviation-holdings","15":"tag-united-states","16":"tag-unitedstates","17":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115016714707832689","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/140085","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=140085"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/140085\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/140086"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=140085"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=140085"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=140085"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}