Spirit Airlines sounds the alarm on its future ability to stay in business

NEW YORK (AP) — Just five months after emerging from Chapter 11 bankruptcy protection, Spirit Airlines is warning about its future ability to stay in business.

Spirit Aviation Holdings, the budget carrier's parent company, says it has “substantial doubt” about its ability to continue as a going concern over the next year — which is accounting-speak for running out of money. In a quarterly report issued Monday, Spirit pointed to “adverse market conditions" that it's continued to face after a recent restructuring and other efforts to revive its business.

That includes weak demand for domestic leisure travel, which Spirit said persisted in the second quarter of its fiscal year — among other challenges and “uncertainties in its business operations” that the Florida company expects to continue “for at least the remainder of 2025.”

Spirit’s shares tumbled more than 40% Tuesday, with the company’s stock closing at $2.10.

Known for its no-frills, low-cost flights on a fleet of bright yellow planes, Spirit has struggled to recover and compete since the COVID-19 pandemic. Rising operation costs and mounting debt eventually led the company to seek bankruptcy protection in November. By the time of that Chapter 11 filing, the airline had lost more than $2.5 billion since the start of 2020.

When Spirit emerged from bankruptcy protection in March, the company successfully restructured some of its debt obligations and secured new financing for future operations. Spirit has continued to make other cost-cutting efforts since — including plans to furlough about 270 pilots and downgrade some 140 captains to first officers in the coming months.

The furloughs and downgrades announced last month go into effect Oct. 1 and Nov. 1 to align with Spirit's “projected flight volume for 2026,” the company noted in its quarterly report. They also follow previous furloughs and job cuts before the company's bankruptcy filing last year.

Despite these and other cost-cutting efforts, Spirit on Monday stressed that it needs more cash. As a result, the company said it may also sell certain aircraft and real estate.

And as discount carriers struggle to compete with bigger airlines — many of which have snagged budget-conscious customers through their own tiered offerings — Spirit is attempting to tap into the growing market for more upscale travel. It is now offering flight options with tiered prices, the higher-priced tickets coming with more amenities. The company pointed to the new strategy again on Monday.

Spirit’s aircraft fleet is relatively young, which has also made the airline an attractive takeover target. But such buyout attempts from budget rivals like JetBlue and Frontier were unsuccessful both before and during the bankruptcy process, and Spirit has not publicly indicated interest in such a transaction since.

FILE - A Spirit Airlines 319 Airbus approaches Manchester Boston Regional Airport for a landing, Friday, June 2, 2023, in Manchester, N.H. (AP Photo/Charles Krupa, File)

CARY, N.C. (AP) — Clayton Kershaw isn't done pitching just yet, agreeing Thursday to join the U.S. team for this year's World Baseball Classic.

The three-time NL Cy Young Award winner wanted to pitch for the Americans in the 2023 tournament but was prevented because of insurance issues. He had a $20 million, one-year contract with the Los Angeles Dodgers at the time.

“I was too broken for the insurance to cover my arm and everything,” Kershaw said on MLB Network, “so now that it doesn't matter I get to go and be a part of this group.”

A left-hander who turns 38 two days after the March 17 championship game, Kershaw announced last September that he was retiring at the end of the season, his 18th in a stellar career for the Dodgers. He won his third World Series title and finished 223-96 with a 2.53 ERA and 3,052 strikeouts.

“I just want to be the insurance policy,” Kershaw said. “If anybody needs a breather or if they need me to pitch back-to-back-to-back or if they don’t need me to pitch at all, I’m just there to be there. I just want to be a part of this group.”

Later Thursday, new Chicago Cubs third baseman Alex Bregman announced he will join the U.S. team.

When Kershaw received a call from U.S. manager Mark DeRosa, he thought he was being invited as a coach.

“I didn't have a whole lot of interest in picking up a baseball again," Kershaw said. “I started throwing 10, 12 days ago and it doesn’t feel terrible, so I think I’ll be OK.”

Kershaw joins a U.S. pitching staff that includes right-handers David Bednar, Clay Holmes, Griffin Jax, Nolan McLean, Mason Miller, Joe Ryan, Paul Skenes and Logan Webb along with left-handers Tarik Skubal and Gabe Speier.

The American roster also includes catchers Cal Raleigh and Will Smith; infielders Ernie Clement, Gunnar Henderson, Brice Turang and Bobby Witt Jr.; outfielders Byron Buxton, Corbin Carroll, Pete Crow-Armstrong and Aaron Judge; and designated hitter Kyle Schwarber.

The U.S., which lost the 2023 championship game to Japan, opens March 6 against Brazil at Houston, part of a group that also includes Britain, Italy and Mexico.

Shohei Ohtani struck out then-Los Angeles Angels teammate Mike Trout to end Japan's 3-2 win in the 2023 championship. Kershaw doesn't anticipate facing Ohtani, his teammate for the Dodgers' World Series titles in 2024 and 2025.

“I think something will have gone terribly wrong if I have to pitch against team Japan in the finals or something. I think we got plenty of guys to get that guy out and not me,” Kershaw said. “But if that happens, I'll be nervous. I'll be nervous at this point.”

AP baseball: https://apnews.com/hub/MLB

FILE - Los Angeles Dodgers pitcher Clayton Kershaw celebrates the end of the top of the 12th inning against the Toronto Blue Jays in Game 3 of baseball's World Series, Monday, Oct. 27, 2025, in Los Angeles. (AP Photo/Brynn Anderson, File)