07:42 AM EDT, 08/12/2025 (MT Newswires) -- Spirit Aviation ( FLYY ) warned Monday that there is "substantial doubt" about its ability to continue as a going concern as it "continues to experience challenges and uncertainties" and expects these trends to persist through at least the remainder of the year.

Spirit, which emerged from bankruptcy in March, continues to face "adverse market conditions, including elevated domestic capacity and continued weak demand for domestic leisure travel in the second quarter of 2025, resulting in a challenging pricing environment," the airline said in a regulatory filing.

Minimum liquidity covenants under debt and credit card processing agreements require faster financial improvement than currently projected, and therefore, the airline said it is seeking to sell or monetize some aircraft and real estate, sell excess airport gate capacity, eliminate certain fixed costs and pursue other transactions to raise cash.

The company said that if these measures are unsuccessful, it may be "unable to comply with the minimum liquidity covenants under the company's debt obligations and credit card processing agreement at some point in the next 12 months, which would result in an event of default."

Spirit Aviation ( FLYY ) shares were 4.8% lower in premarket trading.