Spirit Airlines admits that it may not survive another year

Spirit Airlines has recognized what many suspect: its future in my grandfather.

The news, which was delivered in a presentation With the Securities and Stock Exchange Committee on August 11, the company’s shares were sent to a free fall, and decreased by 41 % in one trading session on Tuesday. SPIRIT’s total market value is now $ 54.3 million.

In the deposit, a very low -cost carrier said there is a “great doubt” about her ability to continue working for more than 12 months from the date of her financial data. Translation: The soul can disappear by August 2026. The company used the term “Go Gears”, an official accounting term that the company is forced to use when it is in severe financial distress and may not have enough money to stay at work. It is one of the most severe signals that a public company can send to its investors.

The airline-which is famous for its bright yellow planes and the non-dress service-appeared only from Chapter 11 of bankruptcy in March after a failed merger with Jetblue. The organizers prevented the integration between airlines, on the pretext that the deal would eliminate a major competitor and increase the prices of consumer. Without merging, the weak spirit was forced to present bankruptcy from Chapter 11, from which it appeared only in March.

But just months later, Spirit says she is still in a deep financial crisis.

A crisis will not leave

Spirit blames a brutal mixture of factors: the ability of local airlines, poor demand for entertainment travel, and a difficult pricing environment that led to a decrease in revenue. The company told a net loss of $ 246 million in the second quarter of 2025. In the SEC file, SPIRIT said it is expected that the shrinkage will continue at least during the rest of the year, even after movements that spend the cost such as selling reserve engines in sales deals, reducing estimated spending, and making impurities in July.

But it was not enough. The company admitted that its financial results are not improving quickly enough to meet the minimum cash requirements for its debt agreements, and it is important to the place of the credit cards processing agreement, which ends at the end of the year.

The airline is now in the last back of liquidity. She is studying the sale of aircraft, real estate and the extraordinary airport gate. Also, in urgent discussions with its credit card processor, which requested additional guarantees to renew its contract, cannot lose the spirit of the deal.

The time is short. Without a dramatic transformation or a new source of criticism, one of the most famous budget airlines in America can soon be based on goodness.