Spirit has cautioned investors that its financial position remains precarious as it continues operating under Chapter 11 bankruptcy protection.
In a third-quarter report filed with the U.S. Securities and Exchange Commission, the ultra-low-cost carrier reported a net loss of $317.5 million.
The airline recorded operating revenue of $958.5 million, down from $1.2 billion a year earlier, while operating expenses totaled $1.09 billion.
The filing, submitted as the airline proceeds through its second bankruptcy in less than a year, highlighted ongoing liquidity and profitability woes. Spirit said it continues to operate as a debtor-in-possession under the supervision of the U.S. Bankruptcy Court for the Southern District of New York.
‘Substantial Doubt’
“After considering the measures taken, minimum liquidity covenants in the Company’s current debt obligations and cash flows to maintain current operational obligations require financial results to improve at a rate faster than what the Company is currently anticipating,” the company said in the filing. “Management believes there is substantial doubt about the Company’s ability to continue as a going concern.”
In accounting terms, a “going concern” designation means a company is expected to remain in operation for the foreseeable future and be able to meet its financial obligations as they come due. Raising doubt about that status signals that the company’s long-term viability is uncertain.
The carrier has previously made similar comments in other filings.
Spirit said its ability to continue depends on improving profitability, maintaining access to liquidity, and successfully implementing a reorganization plan.
The airline cited persistent challenges from “elevated domestic capacity and weak demand for domestic leisure travel,” leading to lower fares and diminished revenues. It said those conditions are likely to persist through the end of 2025.
To bolster liquidity, Spirit borrowed the full $275 million available under its revolving credit facility in August and modified its credit card processing agreement, transferring $50 million in additional collateral and permitting daily holdbacks of up to $3 million.
The carrier also received court approval for $1.2 billion in debtor-in-possession (DIP) financing, including $475 million in new loans. A separate restructuring deal with aircraft lessor AerCap provided a $150 million liquidity payment and adjustments to dozens of aircraft leases.
Spirit previously emerged from an earlier Chapter 11 process in March but filed again five months later amid continuing losses and liquidity pressures.
As of Sept. 30, the company reported $646.6 million in cash and restricted cash, $8.8 billion in total assets, and $6.7 billion in liabilities subject to bankruptcy proceedings.
