Spirit Airlines alerts shareholders on possible closure
Although the company seeks to improve profitability and service to its customers, it continues to struggle to stay afloat.
The American ultra-low-cost airline, Spirit Airlines, Inc. recently announced to its shareholders and investors that it could appeal the closure of its operations in the coming months.
The company based in Miramar, Florida indicated that currently is struggling to maintain its profitability after filing for bankruptcy earlier this year, leading airline executives to tell the Securities and Exchange Commission that they are unsure whether they can continue.
This announcement also comes after the company reported last month that it had furloughed 270 pilots and cut about 140 jobs due to liquidity problems.
"We are taking the necessary steps to ensure we are operating as efficiently as possible as part of our efforts to return to profitability," the company said in a statement.
While Spirit Airlines is making some changes to improve its profitability and service to its passengers, current market conditions are making it difficult for many airlines to do their part, mainly due to the low demand for domestic travel in the last quarter.
In this regard, Henry Harteveldt, president of Atmosphere Research, commented that "ultra-low-cost airlines, as a whole, are the leaders in fares. Consumers benefit from low-cost airlines remaining in the market and being successful," he emphasized.

