Spirit Airlines warns it may struggle to stay in business
Just months after emerging from Chapter 11 bankruptcy, Spirit Airlines is raising concerns about its ability to continue operating.
Spirit Aviation Holdings, the airline’s parent company, said in a quarterly report Monday that it has “substantial doubt” about its ability to remain a going concern over the next year, citing ongoing “adverse market conditions.” Weak domestic leisure travel demand, rising operational costs, and other uncertainties are expected to persist at least through the end of 2025, News.Az reports, citing ABC News.
The low-cost carrier, known for its bright yellow planes and no-frills service, filed for bankruptcy in November 2024 after losing over $2.5 billion since 2020. Since emerging in March, Spirit has restructured debt, secured new financing, and implemented cost-cutting measures, including planned furloughs of about 270 pilots and downgrades of 140 captains to first officers, set for October and November.
Despite these efforts, Spirit said it still needs additional liquidity and may sell aircraft or real estate to strengthen finances. The airline’s relatively young fleet has made it a target for acquisition, though past takeover attempts by JetBlue and Frontier were unsuccessful.
Shares of Spirit fell more than 40% Tuesday morning, trading around $1.80 per share as of 11 a.m. ET.
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