Just five months after emerging from bankruptcy, Spirit Airlines is now warning investors the company may not survive without more cash.
Despite its financial restructuring efforts, the ultra-low budget carrier, which filed for Chapter 11 last November, is facing a turbulent future according to the aviation company's quarterly filing with the Securities and Exchange Commission, a U.S. government oversight and regulatory agency.
The Florida-based budget airline has "substantial doubt" about its ability to continue or sustain operations as it has struggled to regain profitability, its parent company, Spirit Aviation Holdings, stated in the filing.
"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 filing stated. "As a result, the Company continues to experience challenges and uncertainties in its business operations and expects these trends to continue for at least the remainder of 2025."
Spirit was the first major U.S. airline in 13 years to declare bankruptcy since American Airlines. Weaker demand for low-budget leisure travel has made it difficult for the no-frills carrier to price its fares appropriately, while still filling enough seats to make back profit.
Per the filing, Spirit needs more cash or the airline could be at risk of potential default to creditors. The airline said it is considering options including selling off aircrafts, real estate or some airport gate spots.
Following the influx of attention and a stock plunge by 40% on Tuesday, Spirit's CEO and president Dave Davis addressed employees in a written memo, saying the company was "hard at work on many initiatives to protect our unique franchise, our valued Team Members, our business partners and our Guests who place their trust in us every day."
In the memo, he explained that using "substantial doubt" about the company's future is "a phrase required by our outside auditors to convey that there is risk if we do not make changes. But, we are."
Davis also said the airline is "confident" the company can "build a Spirit that will continue to provide customers the unmatched value that they have come to expect for many years to come."
Any travelers with tickets booked on Spirit will not be impacted as there is no suggestion of an imminent shutdown.
