Spirit Airlines Reports $246M Loss, Warns on Survival

Spirit Airlines posted a net loss of $245.8 million for the second quarter of 2025, widening from a $192.9 million loss in the same period last year. The results, disclosed in the carrier’s SEC filing on Monday Aug. 11, mark its second consecutive quarterly loss this year, following a $143 million loss in Q1.

The ultra-low-cost airline has reported cumulative net losses totaling approximately $459.8 million for 2025 so far—comprising $143 million in Q1 and $245.8 million in Q2—raising alarm over its ability to remain viable through year-end

Total operating revenue fell to $1.02 billion from $1.28 billion a year earlier, while operating expenses reached $1.2 billion. In its filing, Spirit said there is “substantial doubt” about its ability to continue as a going concern over the next 12 months, citing overcapacity in the domestic market, weak leisure demand, and a challenging pricing environment.

The ultra-low-cost carrier emerged from Chapter 11 bankruptcy in March 2025 and has since taken steps to improve liquidity. Measures include adding a Premium Economy option, completing spare engine sale-leasebacks, cutting discretionary costs, and announcing the furlough of 500 pilots. The airline is also selling 23 Airbus A320 and A321 aircraft.

Spirit Airlines operates an all-Airbus A320 family fleet aircraft, as of June 2025:

A320-200 In service 50
A320neo In service 91 Orders 23
A321-200 In service 22
A321neo In service 32 Orders 29
Total In service 195 Orders 52

Additional options under review include selling more aircraft and real estate, monetizing unused gate capacity, and removing certain fixed costs. Spirit is in talks with its credit card processor, which has requested additional collateral before the current processing agreement ends in late 2025.

The airline warned that without successful execution of its initiatives, it may fail to meet liquidity covenants, potentially triggering loan defaults and accelerating debt maturities.

Sources: AirGuide Business airguide.info, bing.com, airlinegeeks.com