Spirit Airlines doubts it can continue as a going concern

Spirit Airlines may soon find itself grounded.

The troubled budget carrier has “‘substantial doubt’ about its ability to continue as a going concern over the next year,” according to the Associated Press. In securities filings, it stated that it’s having difficulty meeting its credit card processors’ minimum liquidity requirements, the Wall Street Journal reported.

Spirit, which flies to destinations in the US, the Caribbean, and Central and South America, mentioned “adverse market conditions” as one reason for its struggles. Demand for domestic flights is down, it said, and it expects that trend to continue through the end of this year. Consumers appear to be pulling back on travel spending this summer due to concerns about tariffs and the economy, and lower- and middle-income travelers may opt to drive rather than fly.

Other airlines have also seen softening consumer demand, at least in some income brackets. Delta had a record second quarter, driven by a 5% rise in sales for premium seats, though sales of main cabin seats fell by 5%. It revised its third-quarter EPS guidance downward.

Spirit has had years of financial struggles. It failed to capitalize on the post-pandemic travel boom and lost more than $2.5 billion between 2020 and 2024, per the AP. In 2024, it cut its domestic flights by 20%, and started charging for snacks, drinks, and wi-fi. Despite those measures, it filed for Chapter 11 in November 2024.

The airline emerged from bankruptcy protection in March 2025, having restructured its debt and secured new funding. To free up cash, it said, it plans to furlough around 270 pilots and demote around 140 others, and it will sell or monetize some aircraft and real estate.

If Spirit does go under, look for other airlines to pounce on it. Its fleet is newer, making it an “attractive takeover target,” the AP reported. Frontier and JetBlue have tried unsuccessfully to acquire Spirit in the past.