Spirit Airlines Warns It May Not Survive Another Year

Los Angeles, California – Spirit Airlines has warned that it may not survive as a going concern if it cannot quickly raise cash. In a filing with the Securities and Exchange Commission on Monday, the airline stated there is “substantial doubt as to our ability to continue as a going concern within 12 months from the date these financial statements are issued.” This comes just five months after the budget carrier emerged from Chapter 11 bankruptcy.

Despite efforts to cut debt and restructure operations, Spirit continues to face challenging market conditions, including high domestic capacity and weak demand for leisure travel. The company’s quarterly report highlighted that these factors have resulted in a difficult pricing environment.

To enhance its liquidity, Spirit is exploring several options, including selling aircraft, real estate, or airport gate rights. The airline reported a net loss of $245.8 million in the second quarter of 2025, compared to a loss of $192.9 million during the same period in 2024.

Spirit’s struggles have been compounded by a shift in consumer preferences toward more upmarket travel options. Recent trends show that budget travelers are cutting back on spending, affecting the demand for economy tickets significantly. The airline has adjusted its offerings to introduce premium services while also announcing a plan to furlough nearly 300 pilots.

Analysts warn that failure to secure additional funding could result in defaults on creditor agreements. “Spirit will have liquidity issues after the summer and will need to raise, merge, shrink, or liquidate,” said Savanthi Syth, an analyst at Raymond James. The market pressure is evident as Spirit’s stock plunged 40% shortly after the warning.

Since its bankruptcy last year—the first major airline bankruptcy in over a decade—Spirit has made significant changes to its business model. The company’s future now hinges on its ability to stabilize its financial situation in an uncertain market.