Following failed mergers and nearly nine months after declaring bankruptcy, Spirit Airlines recently notified its investors that it may not be able to survive the next 12 months.
The carrier broke the news in its quarterly earnings report with the Securities and Exchange Commission. The latter is an independent federal oversight and market monitoring agency. Within Spirit Airlines’ report, it noted that it’s still struggling to regain its financial footing. Though the company plans to continue restructuring and repositioning itself, its leadership indicated that there’s uncertainty about whether the initiatives will keep the company alive for another year.
“[Spirit Airlines] 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,” stated the carrier. “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.”
“While it is the company’s goal to execute on these initiatives, there can be no assurance that such initiatives will be successful,” the report added. “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.”
What Else Is There To Know About Spirit Airlines’ Longevity As A U.S.-Based Carrier?
The company hasn’t announced any disruptions to its travelers’ scheduled flights. Spirit Airlines is one of the United States’ most well-known, low-cost carriers. The airline flies to more than 90 destinations, including domestic locations and those in the Caribbean and Latin America.
The carrier has had difficulties staying afloat within the post-pandemic airline industry. In recent years, it was unsuccessful in its attempt to merge with Frontier Airlines. Also, in March 2024, JetBlue Airways terminated its respective merger attempt with Spirit Airlines, noting that it would pay the latter $69 million to resolve their dealings. If it had been successful, JetBlue’s purchase of Spirit Airlines would have completed a $3.8 billion sale. The following month, Spirit Airlines announced the opening of its new headquarters in Dania Beach, Florida.
In November 2024, Spirit Airlines filed for Chapter 11 bankruptcy. By March 2025, the company had emerged from the financial restructuring.
“We’re pleased to complete our streamlined restructuring and emerge in a stronger financial position to continue our transformation and investments in the guest experience,” said company President and CEO Ted Christie in March. “Throughout this process, we’ve continued to make meaningful progress enhancing our product offerings, while also focusing on returning to profitability and positioning our airline for long-term success. Today, we’re moving forward with our strategy to redefine low-fare travel with our new, high-value travel options.”
