Spirit Airlines, the Fort Lauderdale-based budget carrier, has issued a stark warning to investors about its immediate prospects, amid mounting concerns that it is rapidly running out of cash. This comes just months after the airline emerged from Chapter 11 bankruptcy proceedings with a new strategy aimed at competing and surviving in an increasingly competitive yet plateauing U.S. travel market.
In its latest report to the U.S. Securities and Exchange Commission (SEC) on August 11, 2025, Spirit cautioned that without bolstering its cash reserves, it could run out of funds “within the next 12 months” and may be unable to continue operating “as a going concern.” The filing stated:
“Because of the uncertainty of successfully completing the initiatives to comply with the minimum liquidity covenants and of the outcome of discussions with our stakeholders, management has concluded there is substantial doubt as to our ability to continue as a going concern within 12 months from the date these financial statements are issued.”
The warning leaves little room for interpretation. Spirit is failing to generate enough revenue to cover its daily operating costs, and with persistent market headwinds, its liquidity is dwindling. According to the SEC filing, failing to maintain adequate cash reserves could prompt creditors to declare the airline in breach of its debt agreements—an outcome that could trigger loan defaults and threaten the carrier’s survival.
Via AFP По материалам: http://www.planet-today.com/2025/08/spirit-airlines-could-soon-go-out-of.html