WorldAirlineNews has reported Spirit Airlines has seen an increase in demand for air travel ahead of expectations, the news source said.
The South Florida based budget carrier company is well-positioned to potentially increase their market share once flight traffic ramps up.
Spirit Airlines recent injection of USD 335 million from an equity raise and convertible loan notes has given the company a further liquidity boost, and this combined with other capital drawn from the revolving credit facility give the company a significant runway over the coming months. The company also continues to have the option to access another USD 741 million under the loan program from the US Treasury. The company therefore continues to maintain a broad range of options to maintain or even improve liquidity.
Spirit said it is now planning to operate around 550 flights a day in July according to the CEO, which is 70% of what was planned before the pandemic took a hold on the industry. This will allow the current cash burn rate of USD 4 million per day to be reduced and mitigated to a certain extent as the company ramps up operations.
