Spirit Airlines warns it needs more cash to survive

Aug. 12 (UPI) — Spirit Airlines warned investors it needs more cash to survive five months after exiting bankruptcy.

The airline said in a quarterly earnings report Monday that it was harder to make money due to the lower demand for leisure travel.

“However, the Company has continued to be affected by adverse market conditions, including elevated domestic capacity and continued weak demand for domestic leisure travel in the second quarter of 2025, resulting in a challenging pricing environment,” the company said.

Spirit attempted to attract bookings by looking for new ways to lower costs including announcing plans to furlough 270 more pilots this fall. Also, stating that it might sell aircraft, real estate, and the rights to use gates at some airports to make more cash.

It reported a net loss of $245.8 million for the second quarter of 2025.

“Because of the uncertainty of successfully completing the initiatives to comply with the minimum liquidity covenants and of the outcome of discussions with Company stakeholders, management has concluded there is substantial doubt as to the Company’s ability to continue as a going concern within 12 months from the date these financial statements are issued,” it said in the filing.

After filing for bankruptcy in November the company has since named a new CEO, David Davis.

The company exited the process in March and since then the company’s chief executive Ted Christie said it is “emerging as a stronger and more focused airline.”