Originally Posted by
Aquaticus
The business doesn’t operate down to zero. When the credit card companies pull their lines of credit it's imminent. This line “new senior secured notes have a $450 million minimum liquidity covenant” in the ch11 bankruptcy paperwork is pretty telling. These were the 2q numbers and here we are half way through 3q with a cash burn rate that would put them below those liquidity requirements right now.
I don't know Spirit's business very well but we are also entering the slow months of the season. It gets better around late Nov for about 30 days, but late August-September-October are very slow months from an airline perspective.
They basically lost $250m during peak pricing season.