Overview

• Spirit posted a $245.8 million net loss for the quarter ended June 30 and disclosed “substantial doubt” about its ability to continue through the next 12 months.
• Cash and cash equivalents declined by roughly $250 million to about $407 million, as operating margins plunged to –18.1 percent.
• The company will furlough about 270 pilots, demote 140 others, seek aircraft and real estate sales and negotiate with creditors and its credit-card processor to boost cash.
• CEO Dave Davis said auditors required the going-concern language even as he unveils a turnaround strategy focused on network adjustments and cost reductions.
• Analysts warn that a Spirit failure could shrink ultra-low-cost competition and drive higher fares or lost service on lower-density routes.