Spirit Airlines Warns It Might Go Under

Spirit Airlines, once a leader in budget travel, is warning it may not survive another year. In a quarterly report issued Monday, the carrier said its dwindling cash reserves, combined with weak domestic demand for flights, threatens its existence as a business, reports CNBC. Spirit emerged from bankruptcy in March and has tried to drum up more business by rolling out more premium offerings and reducing costs, but big challenges remain.

The carrier's financial recovery is lagging behind the pace needed to satisfy agreements with creditors, and the airline may need to sell aircraft, airport gates, or real estate to raise money, per Reuters. Last month, it said it would furlough 270 pilots in the fall. The company said there is "substantial doubt" about Spirit's ability to continue operating over the next year unless it can secure more cash or renegotiate with stakeholders. (Frontier wants to merge with Spirit.)