Spirit Airlines warns it may not survive another year

Spirit Airlines warned Tuesday that it may not make it through another year, citing concerns over its ability to raise enough cash, despite having successfully restructured its debt and emerging from bankruptcy just months ago. The beleaguered low-cost carrier said in a Securities and Exchange Commission (SEC) filing that it continues to be affected by "adverse market conditions," including continued weak demand for domestic leisure travel in the second quarter of 2025. The persisting challenges created a "challenging pricing environment," the airline said. The carrier also projected that it will continue to "experience challenges and uncertainties" in its operations for the remainder of fiscal 2025. JETBLUE, SPIRIT AGREE TO TERMINATE MERGER OVER REGULATORY ISSUESThe airline said it is taking certain measures to address these challenges, such as implementing a Premium Economy travel option, and selling some of its spare engines and then leasing them back to get quick cash. It also furloughed pilots last month to recoup some costs. Still, it isn't making money fast enough to meet the rules set by its lenders and credit card processor, according to the filing. The company is working with different parties for other ways to rapidly raise cash, such as selling aircraft or some real estate assets. Spirit is also negotiating with its credit card processor, which wants extra money set aside as a safety net before it agrees to renew its deal, which ends on Dec. 31, 2025.SPIRIT AIRLINES PLANS TO SELL PLANES, CUT JOBSThe company said while its goal is to execute on these initiatives, "there can be no assurance that such initiatives will be successful." Given the uncertainty of whether the company can raise enough cash or reach deals with key partners, "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," the filing continued. The carrier, riddled with debt, filed for bankruptcy in November 2024 after failed merger attempts with JetBlue and Frontier airlines. GET FOX BUSINESS ON THE GO BY CLICKING HEREThe company reportedly reignited potential merger talks with Frontier last year after its plans to merge with JetBlue in a deal worth $3.8 billion was blocked by regulators over concerns that the deal would hurt the availability of low-cost air travel tickets.A federal judge blocked the proposed merger in January 2024 after the Department of Justice (DOJ) and several states filed a lawsuit to block the merger over antitrust concerns.Weiter zum vollständigen Artikel bei FOX Business Weiter zum vollständigen Artikel bei FOX Business