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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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Bloomberg broke the news in United States on Monday, August 11, 2025.
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