Spirit Airlines has warned investors that it may go out of business, just months after exiting bankruptcy.
In a quarterly report filed with the Securities and Exchange Commission on Monday, it said there was “substantial doubt” over its “ability to continue as a going concern within 12 months.”
The budget airline said it was harder to make money due to weak demand for domestic leisure travel and “elevated domestic capacity,” meaning increased competition on such routes.
Spirit reported a net loss of $245.8 million for the second quarter of 2025, up from a $192.9 million loss for the second quarter of 2024.
Airlines and hotels have seen travel demand falter since February, when President Donald Trump first introduced tariffs.
When people are concerned about inflation and a weaker economy, travel is typically one of the first things they cut.
While airlines have since reported demand improving in June, profits are still limited.
Legacy carriers like Delta Air Lines have been able to offset weaker domestic leisure travel with increased demand for premium seats, long-haul flights, and business travel.
But for Spirit, domestic leisure is still the core of its business model.
Spirit previously filed for Chapter 11 bankruptcy last November and exited the process in March after slashing its debt by nearly $800 million.
Like other budget carriers, it’s been introducing more premium options since travellers are willing to spend more on experiences since the pandemic.
That includes a “Go Comfy” option, where the middle seat is blocked off, similar to business class on European airlines’ short-haul flights.
It has cut flights and announced plans to furlough hundreds of pilots, too.
However, it also needs more cash to meet the requirements of its debt obligations and credit-card processor, Spirit said in Monday’s filing.
In a bankruptcy court filing last December, Spirit had said it expected to turn a profit of $252 million this year.
The credit-card processor has also told Spirit to put more cash aside as collateral, or it won’t renew its contract, which expires at the end of the year.
Spirit said it might sell aircraft, real estate, and the rights to use gates at some airports to make enough cash to meet these requirements.
Spirit Airlines could not be reached for immediate comment.
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