Spirit Airlines is on shakier ground after avoiding hard decisions in bankruptcy

Core Insights - Spirit Airlines emerged from bankruptcy protection in March 2024 but is now facing significant financial challenges, including a warning that it may not survive the year without additional cash [1][2] - The airline's financial outlook has deteriorated, with a reported loss of nearly $257 million since exiting Chapter 11, contrasting sharply with a previous forecast of a $252 million net profit for the year [5] - Spirit's stock has plummeted nearly 58% following its "going concern" warning, while other airlines' stocks have rallied [6] Financial Performance - Spirit Airlines reported a loss of nearly $257 million since March 13, 2024, through the end of June, despite earlier projections of a $252 million profit for the year [5] - The airline's shares have dropped close to 58% since issuing a warning about its financial viability [6] Industry Context - The airline industry is currently experiencing a downturn, with consumers delaying flight bookings and many airlines, even the most profitable ones, revising their financial forecasts downward [1] - Industry experts criticized Spirit for not making necessary operational adjustments during its bankruptcy, such as renegotiating aircraft leases [3][4] Operational Challenges - Spirit Airlines has approximately 200 Airbus aircraft, and lessors have approached competitors to inquire about taking on these planes, indicating potential operational strain [7] - Experts suggest that if Spirit had managed to reduce lease rates by 10%, it could have significantly improved its cash flow situation [8]