Spirit Airlines warns of potential shutdown. What travelers should know
Travelers have a new reason for concern about a trip on Spirit Airlines.
In a quarterly financial update filed on Monday evening, the Dania Beach, Florida-based carrier warned about its future solvency.
Financial results, Spirit said, are not improving as fast as is necessary to meet the liquidity requirements of its creditors. In other words, the amount of cash and short-term credit available to the airline isn't keeping pace with incoming revenue. As a result, the airline is looking at selling planes, airport gates or other assets to raise cash, and is in discussions with some creditors over the liquidity requirements.
If these do not work, however, Spirit warned that “there is substantial doubt as to the company’s ability to continue as a going concern within 12 months.”
Spirit could face a second bankruptcy filing — or, worse, a liquidation.
This may sound like deja vu because it is. Last summer, following the collapse of its planned merger with JetBlue Airways, Spirit was losing money and faced pressure from its creditors — particularly the company that processed its credit card payments — to raise liquidity. That culminated in Spirit’s Chapter 11 bankruptcy filing in November 2024.
Spirit emerged from bankruptcy in March smaller and with less debt but with one critical challenge: making money. The airline reported a $184 million operating loss during the three months ending in June, or $186 million from the day it exited bankruptcy in March.
The airline has tried raising revenue by going upmarket. It rebranded its Big Front Seat as “Spirit First” and offers a selection of fare bundles comparable to what travelers find at most airlines. More recently, the airline added a premium economy extra-legroom option onboard its planes.
In addition, Spirit has unveiled new destinations from Belize to Tennessee, and forged a new partnership with U.S. regional Contour Airlines.
Spirit, however, faces the same slowdown of U.S. domestic leisure travel as other airlines. And while most airline executives say the market is improving, that appears as though it may not happen fast enough for Spirit.
"The company continues to experience challenges and uncertainties in its business operations and expects these trends to continue for at least the remainder of 2025," Spirit said in its financial filing.
Is it safe to book Spirit?
Few travelers should be concerned about near-term travel on Spirit. The warning to investors looks at a year out, not tomorrow or the next week.
One key date outlined in the filing is Dec. 31, 2025. That is when Spirit must renegotiate an agreement with its credit card processor, one which it warned could require “additional collateral” that would reduce the amount of liquidity it has available.
Spirit will likely disclose more on the gravity of its situation as that end-of-December deadline nears.
If travelers are concerned about booking a flight on Spirit, they may consider buying travel insurance. Just be warned that not all policies cover an airline failing, so be sure to check before you buy.
Opportunities for other airlines
It’s long been the case in the airline industry that one competitor’s struggles are another’s gain. That is very much the case with Spirit.
Frontier Airlines, the country’s second largest budget airline, could gain the most. A Spirit shutdown would mean it would have the low end of the U.S. travel market to itself. It could also possibly pick up dozens of former Spirit aircraft for its own growth ambitions.
“We are going to be last man standing in the low-cost space when you get to next year,” said Barry Biffle, the CEO of Frontier Airlines, on Aug. 5, in what may prove to be a prescient forecast.
Other airlines would also emerge winners. Sun Country Airlines, noted T.D. Cowen aviation analyst Tom Fitzgerald in a report on Monday, could use cuts by Spirit to “begin building a beachhead” at Detroit Metropolitan Wayne County Airport (DTW).
And Spirit’s gates and terminal space at Fort Lauderdale-Hollywood International Airport (FLL) could be appealing to a number of airlines, including JetBlue and United Airlines.
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| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
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Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.