Reuters —

Spirit Airlines has warned of going-concern doubts, just months after emerging from bankruptcy as weak domestic demand and dwindling cash reserves strain its operations.

Adverse market conditions such as elevated domestic capacity and weak demand for leisure travel in the second quarter has resulted in a tough pricing environment for airline, it said in its quarterly report on Monday.

The company expects these pressures to persist through the rest of the year, adding to operational uncertainty. Last month, Spirit said it would furlough about 270 pilots, while demoting another 140, to conserve cash.

The Florida-based airline, known for its bright yellow livery, had filed for bankruptcy protection last November, after years of losses, failed merger attempts and heavy debt.

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