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Spirit Airlines' parent company says it has "substantial doubt" about its future after recently emerging from Chapter 11 bankruptcy, according to the Associated Press.
Spirit Aviation Holdings acknowledged "adverse market conditions" that it's continued to face even after finalizing debt restructuring in March in a quarterly report shared on Monday (August 11). The issues include a weak demand for domestic leisure travel, as well as "uncertainties in its business operations" that the company expected to continue "for at least the remainder of 2025."
Spirit's shares were reported to have dropped more than 40%, with its stock closing at $2.10 on Tuesday (August 12). The low-cost airline has struggled to recover since the COVID-19 pandemic and filed for Chapter 11 bankruptcy protection in November amid rising operation cost and massive debt, having already lost more than $2.5 billion since the beginning of 2020.
The company had successfully restructured some of its debt obligations and secured new financing for the future when it announced it had emerged from bankruptcy in March, but has continued cost-cutting efforts, which includes plans to furlough around 270 pilots and downgrade an estimated 140 captains to first officers set to go into effect October 1 and November 1. The plans, which were announced last month, were said to be part of Spirit's "projected flight volume for 2026," the company said in its quarterly report, having also implemented furloughs and job cuts prior to its bankruptcy filing last year.