Spirit Airlines teeters on the brink of bankruptcy

Just months after emerging from bankruptcy, budget airline Spirit Airlines is warning of substantial doubt about its ability to remain a going concern within the next year. Weak domestic leisure travel demand and increased competition have led to a $245.8 million net loss in Q2 2025, significantly higher than the previous year. Unlike larger carriers, Spirit heavily relies on domestic leisure travel and hasn't been able to offset losses through premium offerings. To meet debt obligations and credit card processor requirements, the airline is considering selling assets, including aircraft, real estate, and airport gate rights. This highlights the vulnerability of the airline industry under economic pressure.