Spirit Airlines, which emerged from bankruptcy last year — the first major U.S. carrier to do so since 2011 — is again warning of serious financial challenges. Known for its bright yellow planes, the low-cost airline struggled after a failed acquisition by JetBlue Airways, shifting consumer preferences toward higher-end products, and a major engine recall that grounded part of its fleet.
In a quarterly filing Monday night, Spirit said it continues to face a “challenging pricing environment” due to increased domestic capacity and weak demand for U.S. leisure travel in the second quarter of 2025. The company plans to temporarily furlough 270 pilots this fall and is considering selling aircraft, real estate, or airport gates to raise cash.
Spirit warned it may not be able to meet liquidity requirements under agreements with creditors without additional financing, and failure to do so could lead to defaults. Management concluded there is “substantial doubt” about the company’s ability to continue operating over the next 12 months without new capital.
