Spirit Airlines Warns Survival At Risk Without New Cash After Weak Q2 Demand And Pricing Pressures

Spirit Airlines warned in a Monday filing that it may not survive the next 12 months without raising additional cash, five months after emerging from bankruptcy, according to CNBC. The airline announced plans last month to furlough 270 pilots this fall and continues to cut costs while marketing more upscale products. The carrier said elevated domestic capacity and weak demand for leisure travel in the second quarter have created a challenging pricing environment. Financial results are not improving fast enough to meet creditor requirements, prompting Spirit to explore selling aircraft, real estate, or airport gates. Management said there is “substantial doubt” about Spirit’s ability to continue as a going concern if it cannot secure the needed liquidity.