Earlier this week, Spirit Airlines issued a significant warning about its future, revealing that it is in imminent danger of shutting down if it doesn’t raise more cash.
The company’s CEO pushed back on that concern a little bit in a statement earlier this week, explaining some of the concerning language the company used in some recent filings.
Still, the company’s flight attendants have been issued a warning about the future.
Spirit Issues a Warning
On Monday, Spirit filed paperwork with the Securities and Exchange Commission (SEC) stating that “there is substantial doubt” about its future.
“Because of the uncertainty of successfully completing the initiatives to comply with the minimum liquidity covenants and of the outcome of discussions with Company stakeholders, management has concluded there is substantial doubt as to the Company’s ability to continue as a going concern within 12 months from the date these financial statements are issued,” the company said in the filing on Monday.
The airline warned that it will need additional cash to avoid defaults and will attempt to sell aircraft, real estate, or airport gates in order to raise the needed cash.
This comes after the airline filed for bankruptcy back in 2024.
Spirit CEO Addresses the Concern
The phrase in Spirit’s filing stating that there “is substantial doubt” about the airline’s future obviously turned some heads, but Spirit Airlines CEO Dave Davis offered a bit of an explanation.
Following the airline’s filing, Davis explained that the phrase was required by outside auditors to convey the risk if no changes are made.
“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 Davis in a statement this week.. “… 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 added that the airline wouldbe “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.”
Spirit Airlines Flight Attendants Receive a Warning
Despite Davis’ reassurances, Spirit Airlines flight attendants were given a pretty significant warning through an internal memo from the Association of Flight Attendants.
The memo warned Spirit flight attendants to take stock of their personal finances.
“We need to be direct,” the memo said, via Paddle Your Own Kanoo. “Spirit is in a fragile financial position, likely more so than at any point in the previous 24 months.”
“We urge you to take an honest look at your personal situation, examine all your options, and prepare for all possible scenarios,” the memo continued. “Use this time to assess your financial situation and begin strategizing how best to weather the financial impact that flying cutbacks may have on your household.”
We’ll have to see what the future holds for Spirit Airlines.
