Spirit Airways is sounding alarms about its future operations lower than six months after the Florida-based funds air service emerged from chapter safety.
“Management has concluded there is substantial doubt as to our ability to continue as a going concern within 12 months,” the airline’s mum or dad firm, Spirit Aviation Holdings, wrote in its quarterly monetary report on Monday.
The report, which displays knowledge by way of the top of June, cited ongoing considerations about money move, market situations and plane gas costs and availability, amongst others.
Spirit inventory took a dramatic tumble Tuesday after the information.
The ultra-low-cost airline has struggled to regain its footing for the reason that COVID-19 pandemic, prompting the corporate to hunt chapter safety in November, which resulted in March.
The corporate introduced final month it will furlough about 270 pilots and demote one other 140 this 12 months to trim its workforce and schedule.
“We are taking necessary steps to ensure we operate as efficiently as possible as part of our efforts to return to profitability,” the corporate informed The Hill. “We recognize the weight of this decision and are committed to treating all affected Team Members with compassion and respect during this process.”
In Monday’s submitting, the corporate advised that it is analyzing different avenues to remain afloat, together with probably promoting some plane and actual property.
