Spirit Airlines, recently emerged from bankruptcy, warns of potential insolvency within a year due to weak demand and a challenging pricing environment. Despite cost-cutting measures like pilot furloughs and marketing upscale offerings, the airline's financial recovery lags behind creditor agreements. To address this, Spirit is exploring options such as asset sales (aircraft, real estate, gates) to secure the necessary funding. Failure to raise sufficient cash could lead to defaults and the airline's demise.

Prepared by Christopher Adams and reviewed by editorial team.