Spirit Airlines admits that he might not survive another year

Spirit Airlines has just admitted what many suspected: his future is in doubt seriously.

The news, delivered in a file to the Securities and Exchange Commission on August 11, sent the actions of the company in free fall, in a fall of 41% in a single negotiation session on Tuesday. Spirit’s total market value is now $ 54.3 million.

In the file, the ultra-show-coint carrier said there was a “substantial doubt” about its ability to continue to operate for more than 12 months from the date of its financial statements. Translation: Spirit could disappear by August 2026. The company used the expression “in alliance”, which is an official accounting term that a company is forced to use when it is in serious financial distress and may not have enough money to stay in business. It is one of the most serious signals that a public enterprise can send to its investors.

The airline – famous for its bright yellow aircraft and its unlikely services – only emerged from the bankruptcy of chapter 11 in March after a failed merger with JetBlue. The regulators have blocked the merger between the two airlines, arguing that the agreement would eliminate a key competitor and increase the prices for consumers. Without the merger, a weakened spirit was forced to deposit the bankruptcy of chapter 11, from which he only emerged in March.

But a few months later, Spirit says he is still in a deep financial crisis.

A crisis that will not leave

Spirit blames a brutal mixture of factors: too much capacity for interior airlines, a low demand for leisure trips and a difficult price environment that has led to income. The company reported a net loss of 246 million dollars in the second quarter of 2025. In its deposit of the SEC, Spirit said that the slowdown should last at least during the rest of the year, even after cost reduction movements, such as the sale of spare motors in the sale rental transactions, reducing discretionary expenses and fuzzlack pilots in July.

But that was not enough. The company admitted that its financial results do not improve quickly enough to meet the minimum cash requirements of its debt agreements and, above all, its credit cards processing agreement, which expires at the end of the year.

The airline is now in a last race for liquidity. He plans to sell planes, real estate and an excess airport door capacity. It is also in urgent discussions with its credit card processor, which has requested additional guarantees to renew their contract, a transaction agreement cannot afford to lose.

The weather is short. Without a spectacular turnaround or a new source of money, one of the most famous Budget Airlines in America could soon be founded for good.