REPORT: Budget Airline ‘May Not Survive’ For Another Year

Spirit Airlines warned Tuesday that it may not be able to stay afloat for another year, citing concerns over its ability to raise enough cash. The report comes after the budget airline successfully restructured its debt and emerged from bankruptcy earlier this year.

In a Securities and Exchange Commission (SEC) filing, the embattled company revealed that it continues to be affected by “adverse market conditions,” including weak demand for domestic leisure travel in the second quarter of 2025. The continuing challenges have created a “challenging pricing environment,” the airline added.

The carrier further projected that it will continue to “experience challenges and uncertainties” in its operations for the remainder of the current fiscal year, Fox Business reported.

As part of its efforts to right the ship, Spirit Airlines will be implementing a number of new initiatives, including a Premium Economy travel option, and selling some of its spare engines and then leasing them back in order to raise cash. The airline also furloughed some pilots last month in order to offset costs.

Despite changes, the company is still failing to generate enough revenue to satisfy guidelines set by its lenders and credit card processor, according to the filing.

The carrier is currently working with different parties in search of other ways to quickly raise cash, such as selling aircraft or some real estate holdings. Spirit is also negotiating with its credit card processor, which wants extra money set aside as a safety net before it agrees to renew its deal, which ends on Dec. 31, 2025.

The filing further noted that while Spirit is working diligently to address the issues, “there can be no assurance that such initiatives will be successful.” Given the current uncertainty of the situation, “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,” the filing continued.

In November of last year, Spirit Airlines filed for bankruptcy after negotiations to merge with JetBlue and Frontier Airlines fell apart. The company reportedly reentered negotiations to merge with Frontier, another budget airline, last year after its plans to merge with JetBlue in a deal worth $3.8 billion was blocked by regulators over concerns that the deal would negatively impact the availability of low-cost air travel tickets.

A federal judge blocked the deal in January 2024 after the Department of Justice and several state attorneys general filed a lawsuit to block the merger over antitrust concerns.