Spirit Airlines fate shaky after avoiding hard decisions in bankruptcy

in March, Spirit Airlines Come out Insolvency conservation Entered less than four months in less than four months and a deteriorating landscape. Consumers were catching booking flights and American aircraft woke up in vacant seats. Even the most profitable airlines cut the livelihood financial forecasts released at the beginning of the year.

But the soul, a airline with bright yellow aircraft Synonymous Along with the budget journey in the US, now the Shakir is also visible on the ground. Last week, bankruptcy, five months after exiting the soul Wags It cannot be alive for a year without more cash and its credit card processor is demanding more collateral.

Industry experts stated that the airline refrains from making hard decisions before or during bankrupt conservation, such as recharging aircraft leases or completely shrinking the carrier. Instead, the airline in bankruptcy reached an agreement with Bondolders who exchanged loans for equity.

Airline analyst of Fitch Ratings Joe Rohlena said, “This did not make much more likely to be successful without dealing with some issues,” Fitch Ratings airline analysts Joe Rohlena said, who downgraped Bhavna last Friday, saying that the company may be unable to avoid default due to its cash burning.

Attorney Brett Miller of bankruptcy, US co-chairman of the Department of Reorganization at Wilki Farr and Galagher, who represented a committee of creditors, stated that Spirit “did not use the equipment available for them in chapter 11” for major changes.

The soul had estimated a net profit of $ 252 million this year, according to A. File a court From December. But Report its Last week, it said that it was lost about $ 257 million since March 13 after exiting Chapter 11 by the end of June.

Share of Spirit aviation holdings Earlier this month, its “anxiety” has come close to 58% since warnings. Stocks of other airlines held a rally after a statement of caution. According to Curtainy Miller of Visual Approach Analytics, about 10% of Spirit seats are not a competition, which is a visual research firm.

Showing signs of stress. According to people familiar with the case, in recent weeks, aircraft lasors have recently reached competitive airline officials whether they will take any of the 200 airbus planes of the soul.

Stuart Hacher, Chief Economist of Aviation Analytics firm IBA, said that he would have expected Bhavna to become more active to deal with aircraft leases during bankruptcy.

“If they are able to take 10% of all their lease rates, it would have a great impact on the cash flow,” he said.

This does not mean the end of the line for the soul.

James Sporegane, Vice Chairman of Financial Services Company Hilco Global said, “There are a lot of incentives to keep the airlines alive because there are many constituencies that hurt badly”, like employees, consumers and others, said James Spreegrain, Vice President of Financial Services Company Hilco Global, who said James Spreegrain, who said the United Air Jemes Represented TWA Airlines.

Recently, the carrier has stated that it is demanding to sell assets such as aircraft, leases and immovable property to raise cash. It has also reduced some of its unprofitable flights and has announced last year. job cuts And sales of aircraft last year to cut cost and raise cash.

Spirit CEO Dave Davis told employees in a memo last week that change Dania Beach, Florida -based company “Consumers will continue to provide unmatched value that they expect for many years to come.”

Spirit refused to comment on whether it would file for bankruptcy again or whether less people are trying to remind their aircraft.

“We will not comment on the rumors and speculation of the market,” Spirit said in an email statement. “Spirit Airlines is an important part of the American aviation industry, and we provide high-value travel options to communities that we serve. We have saved hundreds of millions of dollars to consumers, whether they fly with us or not.

IBA’s hacher said that this is happening in the wrong time of the year – low weather, after peak summer and before winter holidays – to keep aircraft with other airlines, although pricing has been firm. It is even stronger for spare prescriptions and whiteni engines. According to IBA data, the engine for Airbus A321NEOS that uses Spirit is renting $ 15.8 million per month from 2019 to about 50%.

But some people warns that deep cuts cannot always change an airline.

Brett snider, the founder of the Cranky Flier Travel website, said, “If you do not have any place to sleep to burn your bed, the author of a weekly airline industry network analysis and the author of a former airline manager said Brett snider.

Meanwhile, the carrier is already planning Hundreds of more pilotsAnd both aviaters and flight attendant unions are working to give further news to employees.

Flight attendant-CWA association, which represents about 5,400 cabin crew members of Spirit, said after the Spirit warning, “Spirit is in a delicate financial position, which exceeds any point in the last 24 months.” “Use this time to assess your financial situation and start making strategy how the financial impact of the flying cutback at your home can be a weather.”

Hundreds of its flight attendants have already taken temporary leaves of absence, allowing them to have medical benefits.

A Prat and Whitney Engine recall designed several of its aircraft starting in 2023. In the same year, this fellow reached a deal to merge with the budget carrier. Marginal airlinesBut the shareholders rejected the deal in favor of an all-cash takeover Jetbu Airways Finally shot in a federal mistrust case, both carriers were released on their own.

The Frontier was in discussion of merger with Spirit last year just before the Spiti’s bankruptcy filed, but those talks separated.

“They have left every opportunity to do everything,” the snider said.

An oversuply of domestic flights dropped the air fare even in recent years, inspired the industry to cut back capacity, and the trend was specifically punishing for the US-centered carrier. Those low-credentials had another problem when wages increased in view of epidemics, increasing their low-cost models.

Rohlena of Fitch said, “I think there may be optimism on their behalf like a strategic reset.” “It then came face to face with a difficult, harsh aviation environment.”