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Spirit Airlines warns it might not be able to survive without more cash
CNBC ^ | August 12, 2025 | Leslie Josephs

Posted on 08/12/2025 6:09:55 AM PDT by Red Badger

Key Points

The airline issued a going-concern warning in its quarterly filing, months after emerging from bankruptcy,

The budget airline icon has tried to attract bookings by marketing more upscale products like premium economy.

The carrier has been challenged by an oversupply of domestic flights, changing consumer tastes and an engine grounding.

==============================================================

Spirit Airlines has warned it might not be able to survive as a going concern if it doesn’t raise more cash, five months after the budget-travel icon emerged from bankruptcy.

After cutting its debt during restructuring, Spirit has tried to attract bookings by marketing more upscale products and looking for new ways to cut costs. Late last month, the airline announced plans to furlough 270 more pilots this fall.

“However, the Company has continued to be affected by adverse market conditions, including elevated domestic capacity and continued weak demand for domestic leisure travel in the second quarter of 2025, resulting in a challenging pricing environment,” the company said in its quarterly report late Monday.

As its financial results aren’t improving at the same pace creditors agreements require, Spirit will need additional cash. Failing to do so could result in defaults. The carrier is looking at selling some aircraft, real estate or airport gates, it said.

“Because of the uncertainty of successfully completing the initiatives to comply with the minimum liquidity covenants and of the outcome of discussions with Company stakeholders, management has concluded there is substantial doubt as to the Company’s ability to continue as a going concern within 12 months from the date these financial statements are issued,” it said in the filing.

Why Spirit Airlines is struggling

Spirit’s bankruptcy last year marked the first of a major U.S. airline since 2011.

Known for its bright-yellow planes, Spirit was a budget airline pioneer in the U.S., but struggled in the wake of a failed acquisition by JetBlue Airways last year, shifting consumer tastes to more upmarket products and an engine recall that grounded many of its airplanes.


TOPICS: Business/Economy; Military/Veterans; Society; Travel
KEYWORDS: airlines; aviation; flying; spirit; travel
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To: Hyman Roth

Have that on 45!........................


21 posted on 08/12/2025 6:43:16 AM PDT by Red Badger (Homeless veterans camp in the streets while illegals are put up in 5 Star hotels....................)
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To: Eccl 10:2
Nothing several dozen flights a day wouldn’t solve, contracted by the DHS, to places like Tegucigalpa, Caracas, San Salvador, and Mexico City. Especially San Salvador.

Well, that's fine for the self-deporting one-way tickets, but who is going to fly back on them for the next load? Might be the rare time when a subsidy for all those empty flights is worth it.
22 posted on 08/12/2025 6:48:15 AM PDT by Dr. Sivana ("Whatsoever he shall say to you, do ye." (John 2:5))
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To: Red Badger
My flight with Spirit was on a newer jet with a new kind of thin seat. It was overall comfortable, but I prefer the ones with more padding.

The Spirit approach means you are incrementally charged for everything. I think our expectations of free peanuts or a soda from other airlines taints that.

In theory, since I have a libertarian streak, I like this, but the hassle of each tiny incremental item being another charge occasion reminds me of the logical extension of roads for tolls. In other words, yes, government can make no roads and allow private land owners to charge a toll for every new property you now have to pass through, but manning those toll places and not knowing what was fully included or allowed for each land owners’ land makes things incredibly inefficient and not practical. This is how Spirit works, though. There's no “complete” package to buy to lose all the one-off hassles, mimicking a normal airline ticket.

I personally know a Spirit pilot, so I hope he comes out of this, well. He's a truly nice guy.

23 posted on 08/12/2025 6:49:19 AM PDT by ConservativeMind (Trump: Befuddling Democrats, Republicans, and the Media for the benefit of the US and all mankind.)
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To: Red Badger

Maybe they could charge for oxygen on the flights. I think that’s the only thing they DON’T already charge for.


24 posted on 08/12/2025 6:52:23 AM PDT by FrankRizzo890
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To: ConservativeMind

Pilots always do well..................


25 posted on 08/12/2025 6:53:53 AM PDT by Red Badger (Homeless veterans camp in the streets while illegals are put up in 5 Star hotels....................)
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To: dfwgator

But think of all the publicity Spirit Airlines gets on Youtube!


26 posted on 08/12/2025 6:55:34 AM PDT by 17th Miss Regt (Fascist, deplorable, and proud of it!)
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To: libh8er

Maybe they should pay per view flights.


27 posted on 08/12/2025 6:57:42 AM PDT by pas
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To: Red Badger

How can we exist without the 3am Waffle House of air travel?


28 posted on 08/12/2025 7:01:38 AM PDT by Noumenon (Duty is as heavy as a mountain; death is as light as a feather. KTF)
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To: Red Badger

Spirit needs to do three things:

1. Replace seats with seats that recline at least a bit, like Southwest.
2. Adopt Southwest’s model for open seating, single class, and free luggage...now that Southwest has abandoned all of that.
3. Run credit checks on every customer so they’re no longer the “Carnival of the Airways”.


29 posted on 08/12/2025 7:02:19 AM PDT by BobL (If you're over 50 and still eat carbs, expect to become diabetic)
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To: Red Badger

Other airlines would likely throw a bunch of cash Spirit’s way just to keep Spirit’s customers from using other airlines.


30 posted on 08/12/2025 7:10:06 AM PDT by T.B. Yoits
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To: usafa92

>Terrible airline. Have never not had a problem flying them.

Absolutely. Survival of the fittest, I don’t think anybody will miss their crappy service if they were to just go away


31 posted on 08/12/2025 7:10:57 AM PDT by nevadapatriot
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To: Red Badger

Spirit Airlines won’t survive b/c of its reputation of hauling around the most depraved segment of society.

Fights at the Spirit Airlines terminal - and on their planes - are all over the news.

Ditto for the Princess Cruise line.


32 posted on 08/12/2025 7:16:46 AM PDT by Bon of Babble (You Say You Want a Revolutioan?)
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To: Red Badger

Actually, Greyhound isn’t so bad these days. My daughter took Greyhous a couple of years ago to go back to college - the buses had just been revamped - she said the bus was clean, well maintained, seats were in good shape and there was free WiFi.

Spirit Airlines is the Princess Cruises of the sky...


33 posted on 08/12/2025 7:18:30 AM PDT by Bon of Babble (You Say You Want a Revolutioan?)
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To: T.B. Yoits

GOOD IDEA!........................


34 posted on 08/12/2025 7:19:38 AM PDT by Red Badger (Homeless veterans camp in the streets while illegals are put up in 5 Star hotels....................)
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To: BobL
Big yes to #2 and #3.

Not so sure about #1, especially for flights less than 3 hours. I actually like their rocker back seats so no jag-off can trap you for the duration of the flight.

It has happened to me on MORNING flights and isn't fun.

35 posted on 08/12/2025 8:00:59 AM PDT by Vigilanteman (The politicized state destroys many aspects of civil society, human kindness and private charity.)
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To: Red Badger

Nooooo! and have their clientele flock to other airlines?


36 posted on 08/12/2025 8:05:07 AM PDT by NonValueAdded (First, I was a clinger, then deplorable, now I'm garbage. Feel the love? )
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To: Red Badger

I have never heard anything good said about them from anyone ever.


37 posted on 08/12/2025 8:06:16 AM PDT by packrat35 (Pureblood! No clot shot for me!)
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To: packrat35

Here’s one:

It’s a good thing they exist so we can fly on other airlines.................. 😏


38 posted on 08/12/2025 8:14:00 AM PDT by Red Badger (Homeless veterans camp in the streets while illegals are put up in 5 Star hotels....................)
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To: packrat35

Here’s one:

It’s a good thing they exist so we can fly on other airlines.................. 😏


39 posted on 08/12/2025 8:14:00 AM PDT by Red Badger (Homeless veterans camp in the streets while illegals are put up in 5 Star hotels....................)
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To: dfwgator

Spirit has a very useful role in containing the many of the most disruptive people who fly. If Spirit goes away, those people end up on better airlines and causing trouble for the rest of us.


40 posted on 08/12/2025 8:34:30 AM PDT by Wayne07
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