Spirit Airlines CEO Kris Van Cleave is speaking out following reports that the budget-friendly airline may go out of business within the next 12 months.
The sound for alarm started after the company filed paperwork with the Securities and Exchange Commission (SEC) relaying that “there is substantial doubt as to our ability to continue as a going concern within 12 months from the date these financial statements are issued.”
Reports soon surfaced that Spirits Airlines was in financial trouble, and that the financial hardship could mean that the airline will shut down altogether.
Well, that’s not exactly the case, according to Van Cleave, who issued a lengthy statement in an effort to stave off widespread concern among passengers who frequent the airline company due to its low airfares.
“Yesterday, we filed our 10-q, outlining our second quarter 2025 financial results. This filing generated media coverage and, naturally, a lot of questions,” said Van Cleave in a statement via Live and Let’s Fly. “… 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.”
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The plan, Van Cleave says, includes “moving away from the elements of the business that no longer work,” including “strategically growing our network in stronger markets with more opportunities and making some difficult decisions like re-evaluating unprofitable routes.”
The plan also includes “improvements to our revenue management system and the way we sell our products,” though no specifics on this front are provided in the statement.
According to the outlet, Spirit lost $245 million last quarter on $1 billion in revenue. This, coupled with the SEC filing, is likely why the flight attendant’s union warned Spirit flight attendants about a dire future within the company.
“Spirit is in a fragile financial position, likely more so than at any point in the previous 24 months,” the statement read, via Live and Let’s Fly. “We urge you to take an honest look at your personal situation, examine all your options, and prepare for all possible scenarios.”
