Spirit Airlines could soon go out of business — months after declaring bankruptcy
New York Post3 days
Spirit Airlines Warns of Company Viability Risk Within 12 Months
Above: Spirit Airlines A320 taxis at Baltimore-Washington International Airport on June 26, 2025. Image copyright: Kevin Carter/Getty Images
The Spin
Narrative A
The "substantial doubt" language in Spirit’s Q2 filing is an auditor-required disclosure, not a forecast of collapse. Under CEO Dave Davis' leadership, Spirit Airlines is taking decisive measures — eliminating unprofitable routes, expanding in stronger markets, upgrading revenue systems and introducing retrofitted cabins with seven rows of extra-legroom seating — to safeguard its low-fare model and ensure a lasting role in U.S. aviation. Air travelers should have confidence in Spirit's long-term viability.
Narrative B
Despite CEO Dave Davis' attempts to frame the "substantial doubt" warning as a legal formality, Spirit’s numbers tell a harsher story. The carrier lost $245 million last quarter on just $1 billion in revenue, is scaling back operations, and faces hurdles renewing its credit card processing deal — vital to its business model. Union leaders are urging flight attendants to brace for the worst, warning that waning investor and customer confidence could drain the advance ticket sales Spirit needs to survive.
Narrative C
If Spirit collapses, travelers will likely pay the price. The airline’s ultra-low fares force rivals like Frontier, JetBlue and Southwest to keep prices in check, particularly on overlapping routes that are often 15% cheaper. Without Spirit's competitive pressure, fewer options and higher ticket costs could quickly become the norm — especially for budget-conscious domestic flyers.
Metaculus Prediction
© 2025 Improve the News Foundation. All rights reserved.Version 6.14.0
© 2025 Improve the News Foundation.
All rights reserved.
Version 6.14.0