Spirit Airlines warned in a 10-Q filed late Monday that “substantial doubt” exists about its ability to remain a going concern over the next 12 months, barely five months after the budget carrier exited Chapter 11 bankruptcy protection. The disclosure sent shares in parent company Spirit Aviation Holdings tumbling as much as 42 % on Tuesday to about $1.80. The Florida-based airline posted a second-quarter net loss of roughly $245 million and ended June with $407 million in cash and equivalents, about $80 million less than three months earlier. Management said the carrier is struggling to meet minimum liquidity covenants put in place under its restructuring plan, and its credit-card processor has demanded additional collateral ahead of a year-end contract renewal. Spirit blamed the squeeze on a combination of elevated domestic seat capacity and persistently soft demand for U.S. leisure travel, conditions that have kept ticket prices low and pressured revenue across much of the industry. The company has lost more than $2.5 billion since 2020 and said it expects the challenging pricing environment to persist through at least the rest of 2025. To shore up liquidity, Spirit is considering the sale or monetisation of aircraft, real estate and surplus airport gates, while pursuing other “liquidity-enhancing measures.” It has already announced plans to furlough about 270 pilots and downgrade 140 captains to first officers beginning in October. Management said there is no guarantee these steps will succeed, underscoring the carrier’s heightened risk of a second bankruptcy or liquidation.