Spirit Airlines warned of possible insolvency just months after emerging from bankruptcy, citing weak domestic demand, excess capacity, and dwindling cash reserves.

The carrier, which filed for Chapter 11 last November and restructured in March, is facing credit-card processing risks, potential liquidity shortfalls, and ongoing operational pressures.

Spirit plans to raise cash by selling assets and cutting airport gate capacity, but says substantial doubt remains about its ability to continue operating over the next year, Reuters has reported.

Written by B.C. Begley