Spirit Airlines Warns of Financial Strain Post-Bankruptcy

Spirit Airlines has raised concerns over its financial stability, stating there are doubts about its ability to continue operations. This announcement, made in an SEC filing on August 11, 2025, comes five months after the airline’s exit from Chapter 11 bankruptcy protection in March 2025.

The airline reported a significant second-quarter loss of $245.8 million, up from $192.9 million the previous year, blaming weak domestic leisure travel demand and intense competition.

After filing for Chapter 11 bankruptcy in November 2024 and emerging in March 2025, Spirit cut its debt by nearly $800 million. Still, the airline is under pressure from credit-card processors demanding increased collateral.

Spirit’s recent cost-cutting measures include the furlough of 270 pilots and the demotion of 140 others.

To stabilize its finances, the airline may be forced to sell assets such as aircraft and airport gate rights.

Cover photo by Brice Cooper on Unsplash