Spirit Airlines Warns of Possible Collapse Without Additional Funding

Spirit Airlines has warned it may not survive without raising more cash, just five months after emerging from bankruptcy. Despite cutting debt and marketing upscale products, the airline faces weak domestic leisure demand, excess capacity, and tough pricing. It plans to furlough 270 pilots and may sell aircraft, real estate, or airport gates. Financial results are lagging behind creditor requirements, risking defaults. Management sees “substantial doubt” about continuing operations within 12 months. Spirit’s struggles follow a failed JetBlue merger, shifting consumer preferences, and an engine recall grounding planes. Its 2024 bankruptcy was the first for a major U.S. airline since 2011.