US-based Spirit Airlines has announced serious concerns about its ability to continue operations, just months after emerging from bankruptcy. The company is under pressure due to weak domestic demand and decreasing cash reserves.
In the second quarter, increased capacity and low holiday travel demand drove prices down. Spirit anticipates these negative conditions will continue until the end of the year.
Last month, the company decided to furlough 270 pilots and demote 140 pilots.Spirit, which filed for bankruptcy protection in November 2024 and resumed operations with creditor support in March 2025, became the first major US airline to go bankrupt since 2011.
The company also faces the risk of losing its agreement due to a credit card processor’s additional collateral requirement.
Spirit plans to increase liquidity through aircraft and real estate sales and disposal of excess airport capacity.However, the uncertainty surrounding meeting minimum liquidity requirements and discussions with shareholders raises serious questions about the company’s future for the next 12 months.
