Spirit Airlines raises going-concern doubts, months after exiting bankruptcy
Spirit Airlines faces substantial doubt about its ability to continue over the next year due to weak domestic leisure demand, rising costs, and cash reserves that remain insufficient after bankruptcy.
- On August 12, 2025, Spirit Airlines warned in an SEC filing it might not survive next year without raising funds, five months after emerging from Chapter 11 bankruptcy.
- Adverse market conditions include elevated domestic capacity and weak demand for domestic leisure travel in the second quarter of 2025, impacting performance.
- Management reported 'substantial doubt' about its ability to continue as a going concern within 12 months, and its shares plunged nearly 40% to just above $2.20 after the SEC report filed on August 11, 2025.
- Facing collateral demands, Spirit Airlines plans to bolster liquidity by selling aircraft and real estate and shedding airport gate capacity, or risk losing its contract expiring on Dec. 31.
- Facing liquidity shortfalls, Spirit Airlines will furlough about 270 pilots and demote 140 captains, with changes set to take effect on Oct. 1 and Nov. 1.
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Spirit Airlines Warns It Might Go Under
Spirit Airlines, once a leader in budget travel, is warning it may not survive another year. In a quarterly report issued Monday, the carrier said its dwindling cash reserves, combined with weak domestic demand for flights, threatens its existence as a business, reports CNBC . Spirit emerged from bankruptcy in March...
Spirit Airlines warns about its ability to stay in business over next year
Spirit Airlines is sounding alarms about its future operations less than six months after the Florida-based budget air carrier emerged from bankruptcy protection. "Management has concluded there is substantial doubt as to our ability to continue as a going concern within 12 months," the airline's parent company, Spirit Aviation Holdings, wrote in its quarterly financial report on Monday. The report, which reflects data through the end of June, c…
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