Spirit Airlines is facing serious financial trouble, warning investors that it might not survive the next 12 months.
In its August 11 earnings report, the airline pointed to “weak demand” for domestic leisure travel and too many available seats in the market, problems it expects will continue through the rest of the year.
This comes just five months after Spirit exited Chapter 11 bankruptcy on March 12. Since then, the company has tried to improve its offerings with a Premium Economy option and cut costs, including furloughing pilots in July. But Spirit says it’s not seeing the financial turnaround it needs quickly enough, adding there is “substantial doubt” about its ability to continue operating beyond a year.
For travelers, it raises the question: will Spirit weather the storm, or will its bright yellow planes be grounded for good?
