Spirit Airlines sounds the alarm on 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 within the next year — which is accounting-speak for having the resources needed to sustain operations. In a quarterly report issued on Monday, Spirit pointed to 'adverse market conditions" that it's continued to face despite recent restructuring and other efforts to revamp offerings.
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-based company expects to continue 'for at least the remainder of 2025.'
Known for its no-frills, low-cost flights on a fleet of bright yellow planes, Spirit has struggled to bounce back to profitability and boost resources to compete with rivals 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 looming 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.
Those furloughs and downgrades, both announced in July, are set to 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 taken before the company's bankruptcy filing last year.
Despite these and other cost-cutting efforts, Spirit on Monday stressed that it needs more liquidity. As a result, the company said it may also sell certain aircraft and real estate.
Spirit's aircraft fleet is relatively young, which has made the airline an attractive takeover target over the years. But such buyout attempts from budget rivals like JetBlue and Frontier were unsuccessful both before and during the bankruptcy process.
Spirit's shares tumbled more than 40% Tuesday morning, with the company's stock trading at just over $1.80 as of around 11 a.m. ET.
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Mint
a minute ago
- Mint
Government forces Air Canada and flight attendants back to work and into arbitration
TORONTO (AP) — Canada's government forced Air Canada and its striking flight attendants back to work and into arbitration Saturday after a work stoppage stranded more than 100,000 travelers around the world during the peak summer travel season. Federal Jobs Minister Patty Hajdu said now is not the time to take risks with the economy, noting the unprecedented tariffs the U.S. has imposed on Canada. The intervention means the 10,000 flight attendants will return to work soon. The government's action came less than 12 hours after workers walked off the job. "The talks broke down. It is clear that the parties are not any closer to resolving some of the key issues that remain and they will need help with the arbitrator,' Hajdu said. Hajdu said the full resumption of services could take days, noting it is up to the Canada Industrial Relations Board. Meanwhile, Wesley Lesosky, president of the Air Canada Component of the CUPE union, accused the government of violating the flight attendants' constitutional right to strike — and decried Hajdu for only waiting hours to intervene. 'The Liberal government is rewarding Air Canada's refusal to negotiate fairly by giving them exactly what they wanted,' Lesosky said. Air Canada did not immediately have additional comments when reached Saturday afternoon. With the timing of when the carrier will fully resume operations still up in the air, travelers could continue to face disruptions in the coming days. The shutdown of Canada's largest airline early Saturday is impacting about 130,000 people a day, and some 25,000 Canadians may be stranded. Air Canada operates around 700 flights per day. Hajdu ordered the Canada Industrial Relations Board to extend the term of the existing collective agreement until a new one is determined by the arbitrator. 'Canadians rely on air travel every day, and its importance cannot be understated,' she said. Union spokesman Hugh Pouliot didn't immediately know what day workers would return to work. 'We're on the picket lines until further notice,' he said. The bitter contract fight escalated Friday as the union turned down Air Canada's prior request to enter into government-directed arbitration, which allows a third-party mediator to decide the terms of a new contract. Air Canada Chief Operating Officer Mark Nasr has said it could take up to a week to fully restart operations. Flight attendants walked off the job around 1 a.m. EDT on Saturday. Around the same time, Air Canada said it would begin locking flight attendants out of airports. Ian Lee, an associate professor at Carleton University's Sprott School of Business, earlier noted the government repeatedly intervenes in transportation strikes. 'They will intervene to bring the strike to an end. Why? Because it has happened 45 times from 1950 until now,' Lee said. 'It is all because of the incredible dependency of Canadians.' Last year, the government forced the country's two major railroads into arbitration with their labor union during a work stoppage. The union for the rail workers is suing, arguing the government is removing a union's leverage in negotiations. The Business Council of Canada had urged the government to impose binding arbitration in this case, too. And the Canadian Chamber of Commerce welcomed the intervention. 'With valuable cargo grounded and passengers stranded, the government made the right decision to refer the two sides to binding arbitration," said Matthew Holmes, the executive vice president for the Chamber of Commerce — adding that 'close to a million Canadians and international visitors could be impacted" if it takes Air Canada a week to be fully operational again. Hajdu maintained that her Liberal government is not anti-union, saying it is clear the two sides are at an impasse. Passengers whose flights are impacted will be eligible to request a full refund on the airline's website or mobile app, according to Air Canada. The airline said it would also offer alternative travel options through other Canadian and foreign airlines when possible. Still, it warned that it could not guarantee immediate rebooking because flights on other airlines are already full 'due to the summer travel peak." Many travelers expressed frustration over Air Canada's response to the strike. Jean‐Nicolas Reyt, 42, said he had heard little from Air Canada just hours before his upcoming flight from France scheduled for Sunday. 'What's stressful is to not hear anything from Air Canada,' said Reyt, who is trying to return to Montreal, where he is an associate professor of organizational behavior at McGill University. He said he only received one email from the airline on Thursday warning of potential strike disruptions, but had no further information as of Saturday evening in Cannes, where he was visiting family. Reyt assumes his upcoming flight could be canceled — much like the scores of other lengthy disruptions this weekend. 'I'm just very surprised that Air Canada let it go this far,' he said. 'It's really a bit disheartening that they fly you somewhere abroad and then they just don't fly you back.' Jennifer MacDonald, of Halifax, Nova Scotia, expressed similar frustration. She has been trying to help her brother and cousin get home to Edmonton, Alberta since the second leg of their Air Canada trip was canceled during what was supposed to be a 1-hour layover in Montreal on Friday night. The two had to pay $300 out of their own pocket for a hotel, MacDonald said. All Saturday morning, they tried to look for rebooking options, but everything was sold out, she added. Eventually, they opted to book a new flight for Aug. 22 out of Halifax, with another family member volunteering to make an eight-hour drive to pick them up in Montreal and bring them back east on Saturday. 'It will be a multiday ordeal and a multi thousand dollar trip,' MacDonald said. But as stressful as the disruptions have been, she added that her family stands in solidarity with the flight attendants. 'We hope that Air Canada lifts the lockout and negotiates fairly.' Following the news of the Canadian government forcing arbitration on Saturday, Reyt also expressed concern for Air Canada's flight attendants. 'I think the flight attendants are making some reasonable arguments,' he said, adding that he hopes the intervention isn't "a way just to silence them.' Air Canada and the Canadian Union of Public Employees have been in contract talks for about eight months, but they have yet to reach a tentative deal. Both sides say they remain far apart on the issue of pay and the unpaid work flight attendants do when planes aren't in the air. 'We are heartbroken for our passengers. Nobody wants to see Canadians stranded or anxious about their travel plans but we cannot work for free," Natasha Stea, an Air Canada flight attendant and local union president, said before the government intervention was announced. The attendants are about 70% women. Stea said Air Canada pilots, who are male dominated, received a significant raise last year and questioned whether they are getting fair treatment. The airline's latest offer included a 38% increase in total compensation, including benefits and pensions over four years, that it said 'would have made our flight attendants the best compensated in Canada.' But the union pushed back, saying the proposed 8% raise in the first year didn't go far enough because of inflation. ___ Grantham-Philips reported from New York. Airlines reporter Rio Yamat contributed to this report from Las Vegas.
Hindustan Times
31 minutes ago
- Hindustan Times
Yes, It Pays to Share a Home With Family. But Plan for Some Challenges, Too.
Whether it is college graduates taking over the basement because they can't afford to buy or rent, or grandparents seeking the security of family as they age in place, multigenerational households in the U.S. have skyrocketed. According to the Pew Research Center, between 1971 and 2021, the last year for which these statistics are available, the number of people living in multigenerational households quadrupled. The trend is driven by financial issues, the need for caregiving for both children and older adults, and delays in new household formation by young adults. Yes, It Pays to Share a Home With Family. But Plan for Some Challenges, Too. But despite the benefits of communal living, there are challenges as well. Twenty-three percent of adults in multigenerational households say it is stressful all or most of the time, and 40% admit it is stressful some of the time, according to Pew. That is why flexible floor plans that enhance privacy, a healthy respect for boundaries and candid discussions upfront among family members are key to the success of any multigenerational arrangement. Darlene Gibson, 56, and her husband, Jim Gibson, 58, have been sharing their 2,600-square-foot home in Goodyear, Ariz., with Jim's mom, Cheryl, since they purchased it for $422,490 in 2021. Before moving in, Cheryl, 79, was living on her own in rural Virginia, where she was isolated and dependent on others to get around. Today, the family is living together in a style of home that is becoming more popular as multigenerational living becomes more common. Miami-based Lennar has sold its Next Gen home design since 2011, according to Alan Jones, the company's division president in Tempe, Ariz. These models include an attached private suite with a separate entrance, kitchen, living room, bedroom, bathroom and laundry facilities. 'We call it two homes in one,' Jones said. 'A person can live in this space completely independent from the other family.' Jones said that Next Gen homes make up 25% of the company's sales in the Phoenix market and that while prices vary by market and model, the price of a typical 3,000-square-foot Next Gen home is approximately $15,000 more than a similarly sized home without the multigenerational features. But Lennar isn't the only builder offering floor plans designed for multigenerational living. Many homes sold by Fort Washington, Pa.-based Toll Brothers can be customized for multigenerational living as well. In addition, many existing homes are suitable for multiple generations. According to nationally, about 3.8% of homes listed between Jan. 1 and June 21 advertised an additional dwelling unit, in-law suite or casita in the listing description, and homes featuring one of these additional dwelling units had median listing prices 20.6% higher than the market median. (News Corp, owner of The Wall Street Journal, also operates Cheryl Gibson now has the equivalent of her own apartment, where she bakes and gets together with friends. She's lost weight because she's active in the community, using the clubhouse for bingo and craft night. When she needs to go to a doctor's appointment, Darlene and Jim are there to support her. But the arrangement only works, Darlene said, because of mutual respect. Except for emergencies, no one enters the other party's living quarters without knocking first and being invited inside. The arrangement also gives the couple peace of mind, knowing they are just a few steps away in case Cheryl has a health issue or needs assistance. If you're planning to share your home with relatives of different generations, here are some things to consider. Agree on all financial and legal details up front. Hillery Dorner, a real-estate attorney with Dorner Law & Title Services in Concord, Mass., suggests that the parties outline everyone's expectations, responsibilities and financial obligations in a written cohabitation agreement. The agreement should include an exit strategy to lay out what happens if one of the parties dies, gets divorced, needs to move to assisted living or just wants to leave the shared home. If title to the property is held by all parties jointly, that exit strategy should include a method of valuing the home in case one party wants to buy the other out, according to Zachary D. Schorr, a real-estate attorney in Los Angeles. Plan to revisit the agreement every year or so to update it to reflect changing finances and needs. Decide whose names go on the deed. If you need your parents' help to qualify for a mortgage, it is likely the lender will require them to be on the deed and mortgage. Decide whether you want to own the property as joint tenants with right of survivorship, where the surviving party automatically owns the entirety of the property if the other owner dies, or tenants in common, where a deceased owner's share goes to his or her heirs, which could possibly leaving the survivor as a co-owner with strangers. Schorr said that holding title in the name of a trust is a good option as well, assuming the lender will allow it. 'With a trust, there would be a mechanism for who gets what if someone dies or wants out,' he said. Create an emergency fund. Donna Butts, senior fellow at Generations United, a nonprofit that advocates for intergenerational programs and multigenerational living, suggests that families create an emergency fund, to which everyone contributes, to cover unexpected repairs. That fund could also be used to modify the home to allow older adults to age in place or to childproof the home for young children. 'Updating a home for one generation can positively impact multiple generations,' she said. 'That front-loading washer makes it easier not just for older adults but for children who want to help. Accessibility enhances everyone's ability to enjoy the home they share.'
Time of India
an hour ago
- Time of India
New deadline for Curchorem Ravindra Bhavan
Margao: The much-anticipated phase II extension of Ravindra Bhavan in Curchorem is likely to be completed by Sep 31, the latest timeline set by the department of art and culture for completing all pending works. Official records reveal that while the amphitheatre and mini auditorium are structurally complete, interior works remain pending, preventing their immediate use. The project was plagued by multiple setbacks, including the Covid-19 pandemic's impact on manpower and material supply, design changes to the tensile fabric roof system for better structural stability, and contractor-related issues. Most significantly, the interior and allied works contractor was terminated in Dec 2023 due to poor performance, necessitating a fresh tendering process. Financial data reveals that the project's total cost escalated to Rs 27 crore, with Rs 24 crore already disbursed to contractors. The main civil, electrical, and firefighting works component, valued at Rs 20 crore, is 95% complete. However, interior works, originally worth over Rs 20 crore, remain only 50% finished under the new contractor arrangement. The audio-video systems installation is significantly behind schedule at just 30% completion, and doubts persist over its completion before the Sep 31 deadline. Notably, while major infrastructure components like CCTV systems and electrical metering are fully completed, the project's core entertainment facilities remain incomplete. The Rs 1.2 crore audio-video component has seen only Rs 75 lakh in payments, indicating substantial pending work that could further delay the project's operational readiness. The Goa State Infrastructure Development Corporation is overseeing the project through appointed project management consultants. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.
