Spirit Airlines warns it might not be able to survive without more cash

CNBC ^ | August 12, 2025 | Leslie Josephs

[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.

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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.

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

[dfwgator]

Or hopefully they’ll be priced out.

[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.

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“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.”

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I’m sure we can fill those planes up with bananas, avocados, and the like for the return flights.

[frank ballenger]

Me, too.

[frank ballenger]

The critics still bash
With no recent crash
Our red ink’s a rash.
We ran through our stash
and now need more cash.

[Red Badger]

And now we must dash....................

[Red Badger]

And now we must dash....................

[frank ballenger]

RE: fill those planes up with bananas, avocados, and the like

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Or branch out.

Not a plane but a train Graham Nash (Crosby, Stills and Nash) once took a trip on in real life. Animals are allowed to be taken on board by the passengers.

Marrakesh Express

Travelling the train through clear Moroccan skies
Ducks and pigs and chickens call
Animal carpet wall-to-wall
American ladies five-foot tall in blue.

Would you know we’re riding on the Marrakesh Express?
They’re taking me to Marrakesh.

[SpaceBar]

I have flown Spirit Airlines a few times over the last couple of years for short hops and had/have no complaints. As a budget airline, they fulfill a niche consumer choice.

[frank ballenger]

Ah.....the entremet to complete the poem in style. Thank you.

Entremet. Definition.
A French term for a sweet course served at the end of a meal). If the dessert is a small, complimentary item, you might call it mignardise or petit four.

[packrat35]

I have a friend who is a real cheapskate. He said he would never fly Spirit again. They must be bad to make him not do business with them. He is as cheap mas it gets.

I don’t fly anymore so I don’t know.

[SpaceBar]

Probably depends a lot on what part of the country and what ‘local flavor’ of clientele one has to put up with.

[eldoradude]

And now we must dash....................

Dash 8-400 - De Havilland Canada

Category:Accidents_and_incidents_involving_the_De_Havilland_Canada_Dash_8

[SuperLuminal]

This is a problem, why?

[Red Badger]

As one FReeper pointed out, we need Spirit Airlines so that we can fly on other airlines in safety and comfort..............

[BobL]

I don’t think Southwest seats go back far enough to trap people, and I’ve flown them many times. More like a few inches, 4 at most, but helps big time to prevent being crunched-in.