financetom
Business
financetom
/
Business
/
Spirit Airlines raises going-concern doubts, months after exiting bankruptcy
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Spirit Airlines raises going-concern doubts, months after exiting bankruptcy
Aug 12, 2025 3:07 AM

Aug 12 (Reuters) - Spirit Airlines has warned

of going-concern doubts, just months after emerging from

bankruptcy as weak domestic demand and dwindling cash reserves

strain its operations.

Adverse market conditions such as elevated domestic capacity

and weak demand for leisure travel in the second quarter has

resulted in a tough pricing environment for airline, it said in

its quarterly report on Monday.

The company expects these pressures to persist through the

rest of the year, adding to operational uncertainty. Last month,

Spirit said it would furlough about 270 pilots, while demoting

another 140, to conserve cash.

The Florida-based airline, known for its bright yellow

livery, had filed for bankruptcy protection last November, after

years of losses, failed merger attempts and heavy debt.

It was the first major U.S. carrier to file for Chapter 11

since 2011. It emerged from bankruptcy in March after a court

approved restructuring backed by its creditors.

Uncertainty stemming from President Donald Trump's sweeping

tariffs and budget cuts have prompted travelers to curb

spending and reassess plans.

The airline said on Monday that its credit-card processor

has asked it to set aside more funds as collateral or risk

losing its contract, which is set to expire on Dec. 31.

To address the concerns, Spirit said it plans to bolster

liquidity by selling or monetizing aircraft and real estate and

shedding excess airport gate capacity.

Uncertainty over meeting minimum liquidity covenants and the

outcome of talks with stakeholders have raised substantial doubt

about the company's ability to continue as a going concern over

the next 12 months, it said.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Gilead's Trodelvy Fails To Hit Primary Goal In Late-Stage Study With Most Common Type Of Bladder Cancer
Gilead's Trodelvy Fails To Hit Primary Goal In Late-Stage Study With Most Common Type Of Bladder Cancer
May 31, 2024
On Thursday, Gilead Sciences Inc ( GILD ) announced topline results from the confirmatory Phase 3 TROPiCS-04 study in locally advanced or metastatic urothelial cancer (mUC). The TROPiCS-04 study evaluated Trodelvy (sacituzumab govitecan-hziy; SG) vs. single-agent chemotherapy (treatment of physicians’ choice, TPC) in patients with mUC who have previously received platinum-containing chemotherapy and anti-PD-(L)1 therapy. Also Read: Gilead’s Aggressive Push Beyond...
Johnson & Johnson Closes Acquisition of Shockwave Medical
Johnson & Johnson Closes Acquisition of Shockwave Medical
May 31, 2024
09:26 AM EDT, 05/31/2024 (MT Newswires) -- Johnson & Johnson ( JNJ ) said Friday that it has closed its acquisition of Shockwave Medical, which it said will operate as a business unit within Johnson & Johnson MedTech. The transaction is anticipated to dilute adjusted earnings per share by about $0.10 in 2024 and $0.17 in 2025 considering the impact...
--Lowe's Raises Quarterly Dividend by 5% to $1.15 a Share, Payable Aug. 7 to Shareholders of Record as of July 24
--Lowe's Raises Quarterly Dividend by 5% to $1.15 a Share, Payable Aug. 7 to Shareholders of Record as of July 24
May 31, 2024
09:27 AM EDT, 05/31/2024 (MT Newswires) -- Price: 216.62, Change: +1.16, Percent Change: +0.54 ...
Sector Update: Financial Stocks Advance Premarket Friday
Sector Update: Financial Stocks Advance Premarket Friday
May 31, 2024
09:23 AM EDT, 05/31/2024 (MT Newswires) -- Financial stocks were advancing premarket Friday with the Financial Select Sector SPDR Fund ( XLF ) up 0.5% recently. The Direxion Daily Financial Bull 3X Shares ( FAS ) was 1.2% higher and its bearish counterpart Direxion Daily Financial Bear 3X Shares ( FAZ ) was down 1.2%. Affinity Bancshares ( AFBI )...
Copyright 2023-2026 - www.financetom.com All Rights Reserved