Just months after emerging from Chapter 11 bankruptcy, Spirit Airlines is facing financial uncertainty, with its parent company expressing doubt about its ability to continue operating due to ongoing challenges and adverse market conditions. Shares dropped 40% to close at $2.10, reflecting the company’s struggles post-pandemic.

Despite restructuring and cost-cutting efforts following its bankruptcy filing, Spirit Airlines still faces cash flow issues, leading the company to consider selling aircraft and real estate. The budget carrier is also attempting to tap into the upscale travel market by offering tiered flight options with higher-priced tickets for more amenities.

As Spirit Airlines grapples with financial woes, it has become an attractive takeover target due to its relatively young aircraft fleet. However, previous acquisition attempts by budget rivals like JetBlue and Frontier were unsuccessful, and Spirit has not publicly expressed interest in a buyout since emerging from bankruptcy.

Read more at Yahoo Finance: Spirit Airlines sounds the alarm on its future ability to stay in business