Spirit Airlines Fate Shaki after avoiding hard decisions in bankruptcy

In March, Spirit Airlines came out of Bankruptcy protection In less than four months and entered the deterioration of the scenery. Consumers held the flights of the reservation and the American planes left out with empty seats. Even the most profitable airlines reduced the pink financial forecasts issued at the beginning of the year.

But spirit, airline with bright yellow planes that have become synonymous With the US budget trip, now appears on even Shakier soil. Last week, five months after getting out of bankruptcy, spirit warned It may not be able to survive a year without more money and that his credit card processor requested more collateral.

Thursday, the Spirit said She borrowed the entire $ 275 million available under her revolver. He also reached a two-year extension to his credit card processing agreement with the National Association of American Bank to return to $ 3 million a day.

Industry experts said that the airline was to bring severe decisions before or during bankruptcy protection, such as a gathering plan or everything at all reduces the carrier. Instead, an airline in bankruptcy reached a bond contract, exchanged debt for capital.

“It made it much more likely to be able to deal with some of these questions,” said the airline analysis, a-aminat analyst in Fitch, who reduced the company last Friday, saying that the company may not avoid default due to fuel default.

Bankruptcy Lawyer Brett Miller, the US President Department of Restructuring at Willkie Farr and Gallygher, which was a committee of creditors, said the spirit “did not use tools available in Chapter 11” for higher changes.

Spirit predicted net profit of $ 252 million this year, according to a Court application From December. But his report Last week, he said that it lost almost 257 million dollars from 13. March, after Chapter 11 by the end of June.

Actions Spirit Aviation Foldings They fell close to 58% of their “concerning” earlier this month. About 10% of the ghosts of the seat is at the routes without competition, according to Courtney Miller’s visual access analytics, a aviation company.

The signs of strain is displayed. The aircraft solderes reached a competitive airline manager in the last weeks by asking whether to take any of the spirits of approximately 200 Airbus Airbus aircraft, therefore introduced to the question.

Aviation Analytics Firm IBA’s Chief Economist, Stuart Hatcher, said that the spirit will be more proactive at dealing with lease planes during bankruptcy.

“If they can take 10% of all their lease rates, it would have a huge impact on cash flow,” he said.

It doesn’t mean the end of the line for the spirit.

“There are a lot of incentives to keep the airlines as a living as bad” like employees, consumers, consumers and others, said James Sprairegen, the Deputy Prime Minister of Financial Services Hilco Global, which is in their bankruptcies and TVLI airline.

Recently, the carrier said he wanted to sell property such as airplanes, leases and real estate to raise cash. Also reduced some of her non-profit flying and announced last year Means for work and sales of aircraft last year to reduce costs and raise money.

Dava Davis Spirit Davis told employees in notes last week that they change The Dania Beach, Florida Headquarters Company “They will continue to provide consumers incomparable value they came to expect for many years to come.”

The Spirit refused to comment on whether it was re-filing for bankruptcy or whether lessons were trying to collect her planes.

“We will not comment on the rumors and speculation in the market,” the spirit said in the statement by email. “Spirit Airlines is a critical part of the American aviation industry, we rescued consumers hundreds of millions. Our focus is to make stronger airline. We remain stronger airlines. We remain stronger airline. We remain stronger airlines. We remain stronger airlines.

IBA Hatcher said that this was the wrong time of the year – a low season, after top flight and before the winter holidays – to set the plane with other airlines, although the price was firm. It is even stronger for spare pratt and Whitney engines. The engines for Airbus A321NES to benefit for $ 15.8 million per month, more than about 50% since 2019, according to IBA.

But some warn that even deep cuts cannot always turn the plane around.

“You don’t have a sleeping room if you burn your bed,” Brett Snider, the founder of the Cranko Flyer’s trip, the author of the weekly network analyzes of the airline and former airline manager.

Meanwhile, the carrier already plans Furlough Hundreds of PilotsAnd the trade unions and participants of the flight and attendees flying employees for worse news ahead.

“The spirit is in a fragile financial position, more than at any time in the previous 24 months,” the association of summer-cva participants, which included in the crew of cabin, in Article 12. August 12. August, after ghost alerts. “Use this time to evaluate your financial situation and start strategizing how the best time for the financial impact that flying reduction can have in your household.”

Hundreds of their flight attendees have already taken the temporary leaves of absence, which allowed them to maintain medical benefits.

A Pratt & Whitney The motor reminder grounded by many of its planes starting in 2023. years. The same year reached an agreement to merge from the budget carrier Frontier AirlinesBut shareholders refused a contract in favor of all finished downloads JetBlue Airways It was eventually broken in the federal case of antitrust, leaving both carriers alone.

The boundaries was in a connection with Spira last year immediately before sending bankruptcy bankruptcy, but the conversations have broken down.

“They tasted every opportunity to do everything,” Snider said.

In recent years, the cloudy flights and in recent years drove the lower air, encouraging industry to reduce capacity, and the trend was especially punished for American carriers. These low-priced holders had another problem when salaries rose to mold pandemic, and used their low-budget model.

“I think there may be little optimism on its part in terms of the type of strategic reset they were planning,” Rithh’s Rohlena said. “That was the harder face to face with a harder, sharp aircraft environments.”