Spirit Airlines warned it may not survive unless it can raise additional funds, citing ongoing financial struggles, CNBC reported.
In March, The Associated Press reported that Spirit Aviation Holdings, the parent company of the budget carrier known for its no-frills, low-cost flights and yellow planes, exited Chapter 11 bankruptcy after completing a debt restructuring. The reorganization plan, approved by a court in February, is intended to restore profitability and strengthen the airline’s ability to compete with rivals.
Recommended Videos
Spirit has attempted to boost bookings by marketing more upscale products and seeking new ways to cut costs. In July, the airline announced plans to furlough 270 additional pilots this fall.
However, Spirit said it continues to face “adverse market conditions,” including increased domestic capacity and weak demand for leisure travel within the United States.
“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,” Spirit said in a regulatory filing.