Sheesh, looks like some of Americans favorite budget airline is facing tough times. Spirit Airlines is signaling serious trouble ahead, revealing in a new Securities and Exchange Commission filing that ongoing business pressures could force the carrier to close within the next year if conditions do not improve.
Good luck to Spirit. But curious, we thought the economy was going to be doing so well? What happened to all the winning we were supposed to see? The American aviation industry certainly has something to say about that.
Vibe reported quite a bit on this story. Here are some takeaways from their reporting …
“The Company has continued to be affected by adverse market conditions, including elevated domestic capacity and continued weak demand for domestic leisure travel in the second quarter of 2025, resulting in a challenging pricing environment,” the filing states. “As a result, 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.”
Get this, Spirit says it is already taking steps to respond, including network and product upgrades such as a Premium Economy option, sale-leaseback deals for some of its spare engines, and other cost-cutting measures like the pilot furloughs announced in July 2025.
As Vibe reported, in a serious memo to employees, CEO and president Dave Davis sought to clarify the gravity of the situation while emphasizing that changes are underway to stabilize operations. “Let me start by providing some context around what’s included in the report. The report uses the phrase ‘substantial doubt about the Company’s ability to continue as a going concern.’ This is a phrase required by our outside auditors to convey that there is risk if we do not make changes. But, we are,” Davis explained, according to KTNV Las Vegas.
“Spirit is a critical part of the U.S. aviation industry. We have saved consumers hundreds of millions of dollars, whether they fly with us or not. We remain hard at work on many initiatives to protect our unique franchise, our valued Team Members, our business partners, and our Guests who place their trust in us every day.”