Spirit Airlines has reportedly hired advisers to explore strategic options, according to a Wall Street Journal report. This comes shortly after the company flagged a “going concern” in its second quarter results, amid liquidity pressures and its financial restructuring not securing it from ongoing “adverse market conditions”.
“Management has concluded there is substantial doubt as to the company's ability to continue as a going concern within 12 months [from the filing date]," Spirit said in a filing on August 11.
Spirit said it continues to be affected by the domestic leisure demand weakness and higher competition. This comes amid mounting economic uncertainties in the industry, which has particularly impacted domestic travel demand in the US. Other carriers, despite demand slip, have been buoyed by international and premium sales, with loyalty programmes providing substantial revenue streams.
The airline has reportedly hired financial advisor PJT Partners and consulting firms FTI and Seabury Airline Strategy Group. Spirit has been contacted for comment.