Spirit Aviation Holdings Inc (NYSEAMERICAN:FLYY) has warned of “substantial doubt” about its ability to continue operating, citing weakening demand and the need for additional cash to meet debt and credit-card processor requirements.
The budget carrier said travelers have cut back on flights since President Donald Trump announced tariffs, and it may sell aircraft and airport gate rights to raise funds as collateral.
The company, which emerged from Chapter 11 bankruptcy in March after slashing $800 million in debt, had projected a $252 million profit for 2025 in a December court filing.
Spirit posted a net loss of $245.8 million for the second quarter ended June 30, widening from a $192.9 million loss a year earlier.
Shares of Spirit fell more than 40% in early trade to $2.12