Spirit Airlines Warns It May Not Survive Without More Cash. The Stock Is Tumbling.

Spirit Airlines filed for bankruptcy protection in November. (Getty Images)

Spirit Airlines warned Tuesday that it may not survive for another year if it doesn’t raise more cash, just months after exiting bankruptcy.

The low-cost airline said it has continued to be affected by weak demand for domestic leisure travel and elevated capacity in the second quarter. The carrier said it was looking at a number of options to raise additional liquidity, such as selling aircraft, real estate and excess airport gate capacity.

However, it added that if these initiatives were unsuccessful, it would probably be unable to comply with its debt obligations.

Shares in its holding company Spirit Aviation Holdings tumbled 33% to $2.38 in early trading.

The airline filed for bankruptcy protection in November and exited Chapter 11 in March after restructuring its debt.

It said last month that hundreds of pilots would be put on unpaid leave later this year, with many more being downgraded from captain to first officer. Spirit said it was taking necessary steps to ensure it operates as efficiently as possible “as part of our efforts to return to profitability.”

While Spirit has its own company-specific problems, the carrier’s demand warning isn’t a great sign for other discount airlines.

That being said, airline stocks were flying higher early Tuesday. Airline fares rose 4% month over month in July, according to Consumer Price Index data.

Delta Air Lines rose 5%, United Airlines was up 5.5% and Southwest Airlines jumped 3% in early trading.

Write to Callum Keown at callum.keown@dowjones.com