Spirit Airlines is struggling to stay afloat after warning last week that it might not be able to survive the next year without additional cash. The airline emerged from bankruptcy protection in March but has been facing a drop in domestic demand and empty seats on US planes.
According to industry experts, Spirit avoided making hard decisions during its bankruptcy period, such as renegotiating aircraft leases or shrinking the carrier altogether. Instead, it reached a deal with bondholders that exchanged debt for equity.
The airline’s forecast of a net profit of $252 million this year has been replaced with a loss of nearly $257 million since March 13. Shares have dropped by over 58% since its “going concern” warning, and some aircraft lessors are considering taking on Spirit’s 200 Airbus planes.
Spirit is attempting to raise cash through asset sales, including planes, leases, and real estate. It has also reduced unprofitable flying routes and cut costs. However, experts warn that even deep cuts may not be enough to turn the airline around.
“We’ve squandered every opportunity to make everything work,” said Brett Snyder, founder of the Cranky Flier travel website. “The industry is facing tough conditions, and low-fare carriers like Spirit have been particularly hard hit.”
Spirit’s fragile financial position has raised concerns among its employees, with hundreds of flight attendants already taking temporary leaves of absence to keep medical benefits. The airline’s CEO, Dave Davis, said that the company will continue to provide consumers unmatched value despite the challenges.
Despite the difficulties, some experts believe that Spirit still has a chance to recover if it makes necessary changes and adapts to the changing market. However, with its cash crisis deepening, the airline’s future remains uncertain.
Source: https://www.cnbc.com/2025/08/21/spirit-airlines-lessors-bankruptcy.html