Spirit Aviation Holdings saw its shares plunge on Tuesday after the airline warned of “substantial doubt” about its ability to continue operations over the next year. Shares fell $1.39, or 39%, to $2.15 in early afternoon trading. The announcement came in the company’s quarterly report issued Monday, just five months after Spirit emerged from Chapter 11 bankruptcy protection.
The Florida-based carrier pointed to persistent “adverse market conditions,” including ongoing weakness in domestic leisure travel demand, despite recent restructuring efforts. According to CBS News, Spirit reported that challenges and uncertainties in its operations are expected to last “at least the remainder of 2025.”
Spirit Airlines has made a series of cost-cutting moves since its bankruptcy exit in March, including plans announced in July to furlough 270 pilots and downgrade 140 captains to first officers starting in October and November. Those measures follow earlier job cuts made prior to the bankruptcy filing in November 2024.
The company said additional liquidity will be needed to sustain operations, with potential asset sales — including aircraft and real estate — under consideration. Spirit Airlines’ relatively young fleet has helped encourage takeover interest from rivals in the space, including from JetBlue and Frontier in the past. No deals managed to solidify.
Maybe SW can or will buy them.