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Spirit Airlines raises going-concern doubts, months after exiting bankruptcy
Spirit Airlines faces substantial doubt about its ability to continue over the next year due to weak domestic leisure demand, rising costs, and cash reserves that remain insufficient after bankruptcy.
- On August 12, 2025, Spirit Airlines warned in an SEC filing it might not survive next year without raising funds, five months after emerging from Chapter 11 bankruptcy.
- Adverse market conditions include elevated domestic capacity and weak demand for domestic leisure travel in the second quarter of 2025, impacting performance.
- Management reported 'substantial doubt' about its ability to continue as a going concern within 12 months, and its shares plunged nearly 40% to just above $2.20 after the SEC report filed on August 11, 2025.
- Facing collateral demands, Spirit Airlines plans to bolster liquidity by selling aircraft and real estate and shedding airport gate capacity, or risk losing its contract expiring on Dec. 31.
- Facing liquidity shortfalls, Spirit Airlines will furlough about 270 pilots and demote 140 captains, with changes set to take effect on Oct. 1 and Nov. 1.
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127 Articles
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Spirit Airlines May Go Out of Business
Spirit Airlines has been through several problems in the past few years. The most recent one is that it acknowledged in an SEC filing that it may not be able to stay in business. The company’s 10-Q referred to “going concern” several times, which is an indication that it may soon not be able to operate. 24/7 Wall St. Key Points: Spirit Airlines has acknowledged that it may not be able to stay in business. The budget airline may face liquidati…
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