Spirit Airlines warns of ability to remain ‘going concern’ as restructuring continues

Spirit Airlines, which recently entered bankruptcy court protection, has “substantial doubt” about its ability to continue operating during the next year due to steep financial losses amid difficult market conditions. Despite that warning, revealed in Spirit’s just-released third-quarter financial filing, the Miramar, Florida-based airline has said it intends to continue operating as it restructures it finances and operation. On 19 November, CE Ted Christie said, “We look forward to emerging as a stronger company”. Still, Spirit’s third-quarter report, filed on 25 November with the US Securities and Exchange Commission, warns of uncertainty. “The company’s operations and ability to develop and execute its business plan, its financial condition, liquidity and its continuation as a going concern are subject to a high degree of risk and uncertainty,” Spirit’s filing says. “Management believes there is substantial doubt about the company’s ability to continue as a going concern.” The airline would typically have filed its third-quarter report several weeks ago but delayed the filing due to its troubled financial condition. Spirit on 18 November filed for Chapter 11 protection in US Bankruptcy Court for the Southern District of New York.<br/>