Aug 22, 08:40 PM

Spirit Airlines Hit by Moody’s Downgrade as Carrier Seeks Strategic Options

Moody’s Ratings cut Spirit Airlines two notches further into junk territory after the ultra-low-cost carrier tapped the remaining US$275 million on its revolving credit facility. The agency cited higher-than-expected cash burn—projected to exceed US$500 million next year—weak domestic leisure demand and a challenging fare environment. Spirit ended the second quarter with just US$408 million in unrestricted cash, months after emerging from bankruptcy protection in March. Facing renewed liquidity pressure, Spirit is evaluating strategic alternatives, including a potential sale or additional capital raise, according to people familiar with the matter. The review follows a restructuring that has so far failed to establish a sustainable business model for the Dania Beach, Florida-based airline. Separately, a US federal appeals court ruled that consumers who unsuccessfully sought to block the abandoned US$3.8 billion merger between JetBlue Airways and Spirit are not entitled to recover US$34 million in attorneys’ fees, saying they were not the prevailing party in the litigation.

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Written with ChatGPT .

Spirit Airlines Hit by Moody’s Downgrade as Carrier Seeks Strategic Options

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