Spirit Airlines Reports Second Quarter 2025 Net Loss of $245.8 Million or ($7.24) per Diluted Share
- Joe Breitfeller
- 4 days ago
- 3 min read
Spirit Airlines has filed their second quarter 2025 10-Q with the SEC reporting net loss of $245.8 million or ($7.24) per diluted share on a 26 percent year-over-year decline in revenue to $1.02 billion.
On Monday (August 12, 2025), Spirit Aviation Holdings, Inc. (Spirit Airlines) reported their second quarter financial results for the period ending June 30, 2025. The carrier reported a net loss of $245.8 million or ($7.24) per diluted share on a year-over-year decline in revenue of 26 percent to $1.02 billion. At June 30, 2025, the company had cash, cash equivalents and short-term investments totaling $627 million, down from $1.02 billion at June 30, 2024.
The following is Spirit Aviation’s ‘Going Concern’ statement from the company’s latest 10-Q filing with the U.S. Securities and Exchange Commission (SEC):
“On March 12, 2025, the Company emerged from the Chapter 11 Cases in accordance with the Plan. As part of the reorganization, the Company successfully restructured certain of its debt obligations, established new financing arrangements, and issued new equity securities consisting of new common stock and new warrants. However, the Company has continued to be affected by adverse market conditions, including elevated domestic capacity and continued weak demand for domestic leisure travel in the second quarter of 2025, resulting in a challenging pricing environment. As a result, the Company continues to experience challenges and uncertainties in its business operations and expects these trends to continue for at least the remainder of 2025.
“The Company has already taken certain measures to address these challenges, including the implementation of network and product enhancements, including its Premium Economy travel option, consummation of sale-leaseback transactions related to certain of its owned spare engines, and other discretionary cost reduction strategies, including the pilot furloughs announced in July 2025. After considering the measures taken, minimum liquidity covenants in the Company’s debt obligations and credit card processing agreement require financial results to improve at a rate faster than what the Company is currently anticipating. As a result, the Company plans to take additional liquidity enhancing measures, which may include the sale or other monetization of certain aircraft and real estate, the sale of excess airport gate capacity, elimination of certain fixed costs and other transactions to raise additional liquidity. The Company is in discussions with various stakeholders related to some of these future initiatives. The Company is also in discussions with representatives of its credit card processor, which has requested additional collateral to renew its credit card processing agreement, which expires on December 31, 2025. The level of collateral required to be posted could result in a material reduction of unrestricted cash. While it is the Company’s goal to execute on these initiatives, there can be no assurance that such initiatives will be successful.
“If these initiatives are unsuccessful, management believes it is probable that the Company will be unable to comply with the minimum liquidity covenants under the Company’s debt obligations and credit card processing agreement at some point in the next 12 months, which would result in an event of default (in the case of the Exit Revolving Credit Facility, if there are amounts drawn and outstanding under the Exit Revolving Credit Facility at that time), which could cause the maturity of the Company’s debt obligations to be accelerated. 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’s condensed consolidated financial statements have been prepared assuming that it will continue to operate as a going concern, which contemplates the continuity of operations, realization of assets and liquidation of liabilities in the normal course of business, and does not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from uncertainty related to its ability to continue as a going concern.”
Dania Beach, Florida-based low-cost carrier Spirit Airlines (NYSE American: FLYY) is committed to offering the best value in the sky with service to nearly 100 destinations in the U.S., Latin America, and the Caribbean. Spirit operates one of the youngest and most fuel-efficient fleets in the U.S., proudly calling their youthful all Airbus A320/A320neo Family fleet of aircraft their “Fit Fleet®.”
Source: Spirit Airlines