ARC NEWS
Spirit Airlines casts doubt on future as a going concern
August 13, 2025
Spirit Airlines has warned that within the next 12 months it may be unable to operate "as a going concern", citing uncertainty about its ability to comply with minimum liquidity covenants. The US carrier emerged from its Chapter 11 restructuring process on 12 March. In an 11 August filing to the US Securities and Exchange Commission, Spirit notes that a surplus of domestic capacity and "continued weak demand for domestic leisure travel" in the second quarter have led to a "challenging pricing environment" and "uncertainties in its business operations". It expects these conditions to persist throughout the year. Dania Beach, Florida-based Spirit also highlights that minimum liquidity covenants in its debt obligations and credit-card processing agreement require financial results to improve at a faster rate than it expects to achieve. It says it may sell certain aircraft, real estate and excess airport gate capacity to raise liquidity. "If these initiatives are unsuccessful, management believes it is probable that the company will be unable to comply with the minimum liquidity covenants under the company's debt obligations and credit-card processing agreement at some point in the next 12 months, which would result in an event of default," Spirit adds. In the second quarter, it made an operating loss of $184 million, deepening a $153 million loss in 2024's second quarter.


AFG places A320 with Yemenia
August 13, 2025
Aircraft Finance Germany has placed an Airbus A320 with Yemenia. The lessor identifies the narrowbody as MSN 5050, and says the jet's placement marks a "cornerstone" of its expansion in the Middle East. Cirium fleets data shows that the 2012-vintage aircraft was previously leased to Royal Air Philippines, and that it joins three A320s that Yemenia has in service. All are owned by the carrier. In 2021, AFG placed an A330 (MSN 883) with Yemenia. This widebody and three A320 narrowbodies were declared total losses in May 2025, Fleets data shows. In posts, Yemenia indicated that the four aircraft had been destroyed by Israeli air strikes on Sana'a airport.


Heathrow expects government's third-runway response this autumn
August 12, 2025
Heathrow Airport expects that the UK government will provide an update on its plans to develop a third runway this autumn. The London hub's operator, which has revealed that July was its busiest month ever, is awaiting a response from the authorities to expansion proposals it submitted with a view to securing planning permission by 2029 and completing construction by 2035. These plans include an upgrade to the M25 motorway that Heathrow says can be delivered without disrupting traffic flows. "Heathrow is ready to mobilise, and the government will now decide the next steps, with an update expected in the autumn," says the airport. It argues that expansion would give passengers lower fares, more choice and more destinations, while helping to grow the economy. The airport handled 7.9 million passengers in July, a record high. It cites particularly strong demand to and from North America, up 0.9% on last year, boosted by "a fortnight of elevated traffic both before and after" the USA's 4 July Independence Day holiday.


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