S&P Global has downgraded Spirit Airlines to 'CCC' after the airline disclosed in its quarterly filing for the period ended 30 June that there is substantial doubt about its ability to operate as a going concern. "Continued deterioration in the airline's operating performance – driven by overcapacity in key domestic markets, engine issues limiting capacity growth and utilisation, and elevated labour costs – has widened S&P Global Ratings' projected cash flow deficit, and we believe the company may breach its minimum liquidity covenant in the near term," S&P says. As a result, the rating agency has lowered its issuer credit rating on the company to 'CCC' from 'CCC+'. It also downgraded Spirit's enhanced equipment trust certificates (EETCs) by one notch, reflecting its lower issuer credit rating on the company. "The negative outlook reflects our doubt around the company's ability to improve operating performance and maintain sufficient liquidity, and our view that a debt restructuring or a distressed exchange is likely over the next 12 months," S&P says. It adds: "Spirit is actively implementing measures to strengthen its cash position, but the pace of improvement may be insufficient to prevent a liquidity crisis. Despite taking steps such as network reconfiguration, pivoting toward premium, and cost reduction strategies (including pilot furloughs), Spirit's turnaround plan has yet to generate progress in its financial results."

A special-purpose vehicle connected to Azorra is seeking damages from LAM Mozambique Airlines over the "total loss" of a De Havilland Dash 8-400 leased to the African carrier. In a claim form submitted to the UK high court on 21 July, an SPV named Azorra Eagle 1 DAC accuses LAM of failing to pay rent on the turboprop (MSN 4175), failing to maintain a valid certificate of airworthiness for it, and failing to redeliver it to a designated location in Germany after the lessor terminated the lease by notice on 22 May 2024. The claimant adds that the aircraft remains "at large" and is "assumed to be at Maputo airport" in Mozambique. In response to the airline's "wrongful detention of it", the aircraft was declared a total loss by 7 November 2024, writes the claimant, noting that LAM's insurers were then notified of a claim for indemnity under the insurance coverage. In the claimant's argument, insurers' failure to pay an agreed value of $10.3 million makes the airline liable for that amount. Azorra Eagle 1 DAC is listed in the claim for as being formerly known as NAC Aviation 33. This was a special-purpose vehicle that owned assets previously leased by Nordic Aviation Capital. In June 2022, Millbank stated that it had advised a syndicate of secured lenders led by BNP Paribas on the US Chapter 11 restructuring of the Nordic Aviation Capital group and the resulting separation and refinancing of NAC Aviation 33. Cirium fleets data shows that the 2007-vintage turboprop was leased to LAM by NAC in 2021, which corresponds to the claim form which states the aircraft was delivered to the airline on or about 21 March 2021 and the term of the lease was set to expire in March 2026. LAM and Azorra have been contacted for comment.

Indian carrier Akasa Air will start flights from Mumbai to Phuket from 20 September, marking its first foray into Southeast Asia. The carrier says it will operate daily services on the route with Boeing 737 Max 8s. Schedules data shows that it will compete with IndiGo on the route, which operates twice-daily services using Airbus A320s. Akasa's chief commercial officer Praveen Iyer says that the routes cater to India's "new era of outbound tourism powered by its large population of globally curious flyers".