Spirit Needs More Cash To Survive, Airline Warns: 'There Is Substantial Doubt'

By Chris Spiker From Daily Voice

Despite recently emerging from bankruptcy, Spirit Airlines warns that it may not survive the next year without raising more cash, according to a new filing.

Spirit said it's facing significant financial pressure due to "elevated domestic capacity and continued weak demand for domestic leisure travel" in the second quarter of 2025. The budget airline disclosed its concerns in a quarterly filing with the Securities and Exchange Commission on Monday, Aug. 11.

The Dania Beach, Florida-based company said it expects to face a "challenging pricing environment" through at least the end of 2025.

"Because of the uncertainty of successfully completing the initiatives to comply with the minimum liquidity covenants and of the outcome of discussions with our stakeholders, management has concluded there is substantial doubt as to our ability to continue as a going concern within 12 months from the date these financial statements are issued," Spirit wrote to the SEC.

Spirit said it plans to take "liquidity-enhancing measures" to raise money. The moves could include selling off aircraft, airport gates, and real estate.

The warning is the latest sign of trouble for Spirit, which exited Chapter 11 bankruptcy in March after shedding nearly $800 million in debt and securing $350 million in equity investments. Since then, the airline has made leadership changes, announced new premium seating options, and cut hundreds of pilot jobs.

In April, Spirit named former Sun Country Airlines president Dave Davis as its new CEO, part of a broader shakeup that saw longtime chief executive Ted Christie resign. The airline has also shifted its focus toward more premium travel options, introducing extra-legroom "Go Comfy" seating with added perks.

The financial strain remains for Spirit, which will reportedly furlough 270 pilots and downgrade 140 captains in the fall. This will be the second round of pilot cuts in two years, as the carrier aligns its staffing with a slimmer flight schedule during slower travel months.

Spirit had 11,331 employees at the end of 2024, according to financial data firm Stock Analysis.