Low-Cost Airline Admits “Substantial Doubt” It Can Stay Airborne

Spirit Airlines has once again found itself in financial trouble, this time less than a year after claiming to have emerged from bankruptcy, refiling for Chapter 11 protection, and beginning the restructuring process. The Florida-based ultra-low-cost carrier has now acknowledged  “substantial doubt” about its ability to continue operating.

The admission came in a new Securities and Exchange Commission filing, where Spirit revealed third-quarter losses of $317.5 million and a sharp drop in revenue compared to 2024. The airline’s total losses for 2025 are now expected to reach $804 million, bringing its cumulative drop to roughly $3 billion since 2020.

Despite chopping routes, employees, and airplanes, Spirit’s efforts have resulted in little more than unhappy employees and concerned customers. The filing cites $8.8 billion in total assets and $6.7 billion in liabilities, leaving just $646.6 million in cash.

“After considering the measures taken, minimum liquidity covenants in the Company's current debt obligations and cash flows to maintain current operational obligations require financial results to improve at a rate faster than what the Company is currently anticipating," the filing read. "Management believes there is substantial doubt about the Company's ability to continue as a going concern."

This isn’t the first time the airline has sounded the alarm. In its previous SEC filing last August, Spirit warned of the same doubt, citing weak demand, excessive domestic capacity, and brutal fare competition from the big four carriers. Since then, things have only worsened. The company remains under the supervision of the US Bankruptcy Court for the Southern District of New York and has borrowed up to $275 million in revolving credit just to stay afloat.

A $1.23 billion restructuring package approved in October offered a temporary lifeline, but the cuts that trailed behind have been vast. Spirit has eliminated 150 corporate positions, furloughed or downgraded hundreds of pilots, and seen two senior executives depart. The carrier is also exiting several major markets, including Milwaukee and Phoenix, by early 2026.

FMI: www.spirit.com