Spirit Airlines warns it may go out of business within a year. They emerged from bankruptcy but aren’t doing much differently. They’re losing tremendous amounts of cash, and don’t have a lot left. And if something doesn’t change quickly, they can’t last.
The airline’s credit card processor appears to be squeezing them, based on an SEC filing, and as they renew their agreement they’re going to have to post more cash – cash they don’t have – as a cushion against chargebacks in case they’re unable to honor flights for the tickets that they sell.
And so they’re looking at the sale of additional assets like planes, real estate and gates and “elimination of certain fixed costs.” They could make it. And they’re trying to reassure anxious employees while the AFA-CWA flight attendants union is warning its members to take stock of their finances in case they’re thrown out of work.
In an internal memo, the carrier’s CEO wrote:
Spirit is a critical part of the U.S. aviation industry. We have saved consumers hundreds of millions of dollars, whether they fly with us or not. We remain hard at work on many initiatives to protect our unique franchise, our valued team members, our business partners, and our guests who place their trust in us every day.
Indeed, Spirit has been great for consumers who do not fly Spirit because they’ve helped drive down fares on other airlines too. And they’ve made flying more affordable – and entertaining! – for everyone.
Fight Breaks Out at Atlanta Airport pic.twitter.com/ymo6meyLey
— ATL Uncensored (@ATLUncensored) February 21, 2025
A WILD brawl broke out at a #SpiritAirlines check-in counter in Baltimore… and it was all caught on video! pic.twitter.com/vrrOlfEWdF
— TMZ (@TMZ) May 31, 2024
According to the airline’s flight attendants union, though:
“We need to be direct,” the memo said. “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.”
American Airlines board member Doug Steenland oversaw furloughs as head of Northwest Arilines, with the carrier offering advice on just how to do that. They advised on ‘101 ways to save money’ like dumpster diving:
8. Replace 100 watt bulbs with 60 watt.
12. Buy spare parts for your car at a junkyard.
15. Get hand-me-down clothes and toys for your kids from family and friends.
17. Request to get interest on a security deposit for your apartment.
18. Take a shorter shower.
19. Write letters instead of calling.
31. Hang clothes out to dry.
33. Volunteer two hours a month for reduced cost food through the Share Program.
46. Don’t be shy about pulling something you like out of the trash.
53. Bicycle to work.
55. Ask your doctor for samples of prescriptions.
76. Don’t use your dishwasher dry cycle; open the door and let them air dry all night.
Even the AFA-CWA’s Sara Nelson knows that the Biden administration’s competition policy blocking JetBlue from acquiring Spirit and giving workers there – and the airline’s capacity – a lifeline was pure folly.
P.S. I’m . The objection to the merger was a fanciful idea that Spirit would just keep playing the ULCC “role” of consumer choice and competition with the majors (on the backs of workers, btw, and SNL’s punchline every Saturday). Read the absurd DOJ arguments – that were wrong!
— Sara Nelson (@FlyingWithSara) August 13, 2025
I am hopeful that Spirit Airlines can generate cash, that the economy supports their business (despite hgher costs coming out of the pandemic and a product less aligned to consumer preferences, along with a toxic brand). However I probably wouldn’t buy Spirit Airlines tickets for travel more than a couple of months out – within a period I’d be confident I could dispute the charges if travel weren’t honored.
Spirit, Frontier, and JetBlue have no future as independent carriers, and neither does Southwest, even with its significant capitalization. All four will end up carved out or absorbed by one of the US big 3 carriers. Only a matter of time.
so, to be clear, nobody at NK or its FA union said anything about pulling something from the trash, right?
NK is in a very difficult position and its union provided general guidance but certainly nothing replicating what NW told its employees.
I’m sure many Spirit employees are going to be applying for jobs at other airlines in the wake of this announcement, in a interview I’m sure there will be no mystery as to why they are looking for another job as if it would even need to be asked. .
Sara Nelson, as much as I dislike her, is right about the brand. It’s toxic, it’s glaring and painted yellow.
The few times I’ve flown them they have been fine, but I think the public thinks twice before booking Spirit. Before even taking into account any previous personal experience.
This feels like the “I’m not dead yet!” scene from Holy Grail. While many (including Gary) are prematurely celebrating the demise of a major American company, it hasn’t happened yet. And the bashing of Spirit’s employees and union is just mean and unnecessary. Macro issues are more to blame than anything. And Spirit won’t be the only company. We all should be ‘preparing’ though I wouldn’t recommend dumpster diving.
@Tim Dunn — Yeah, bit of a misleading title, especially when it was “American Airlines board member Doug Steenland oversaw furloughs as head of Northwest Arilines” (in 2008) who shared the list of ways 101 ways to save money.
@1990 garden variety click bait headline. Let’s be real.
Spirit screwed me – badly – the first time I ever booked with them and it ruined a vacation. At that point I decided I would never use them again at any price! I won’t miss them one bit.
The few times that I have flown with Spirit it has been fine. I’ll miss them if they don’t survive, particularly as they force other carriers to be more price competitive.
It seems to me that low cost carriers in the U.S. have had a poor history of profitability and, ultimately, survival whereas those in Europe and Asia do much better. An analysis of that, without snarkiness, would be interesting.
I know I’m overgeneralizing here, sure there are great people over at spirit, somewhere in the woodwork…. I’m just worried where the employees and mainly customers go? Without a shambled sh*thole Spirit Airlines, those people have no choice but to start flying other options. Although I guess maybe I should have hope that DL, AA, UA and the likes wouldn’t put up with the circus acts. Spirit has been the perfect storm in that regard though. Horrible employees with horrible customers, a storm brewing for years to at provided great entertainment from afar, though!
I’ve long expected the Big 3 to start calling for an end to Airline Deregulation, ostensibly in the name of “improving the customer experience,” but really as a barrier to new entrants and potential overseas competitors.
@Denver Refugee — It may not be official, but there’s already de-facto regulatory capture, revolving doors between aircraft manufacturers, the major airlines, and the FAA, as it is. At times, it does feel like it’s all an illusion of competition in this and many industries in the USA, circa 2025.
Oh, and we’re not ‘fixing’ this anytime soon; worse, we’re doubling-down, more grifting, tax cuts for the wealthy, layoffs and programs cut for the poor, which is part of the reason why the market segment for Spirit is likely just ‘staying home.’ Recessions usually mean less/no vacations.
Folks in-need probably should prioritize food, shelter, medicine, not flights to beaches or grandma. After all, recall that during the pandemic, Texas’ lieutenant governor Dan Patrick infamously suggested grandparents are willing to die for US economy. Line. Must. Always. Go. Up.
Did someone seriously mean that people should eat items from a trash can?
Also, why would anyone who has an inflexible schedule buy flights on an airline that could stop operating at a moment’s notice even if they can get their money back somehow?
Social media right or wrong will have put both Spirit and Frontier airlines in the grave, outside the hope of government bailouts. The number of airline/airport meltdown channels on Youtube have exploded and most of the time it involves one of these two airlines.
The type passenger these two airlines need is going to shy away from them. Social media has replaced the news. Only old people over age 70 read newspapers and watch network or cable news.
Flight attendants should be sending resumes to other airlines. The only other outside possibility I see are flight attendants, and pilots taking 30%-40% pay cuts.
@George Romey — Next, you’ll blame mass-shootings on video games, won’t you?
No, social media isn’t the cause of Spirit (or any airlines’) troubles lately. If anything, in the era of the ‘attention’ economy, Spirit has earned a lot of free brand recognition via those World-Star!-style ‘brawls.’ Besides, fights happen on other airlines, too, yet, folks really don’t blame the airline; they blame the people fighting (or at least they should).
What’s really happening here is that the economy is not working for most people. #45/47 has not addressed affordability issues; and those problems are just getting worse. And instead of looking at why *cough* unnecessary wealth-killing tariffs *cough* you’ll blame scapegoats (It’s the kids these days! The immigrants! ‘Illegals!’). Have fun with that. But, it’s not the real reason this airline or the economy at-large is struggling.
@George Romey – Flight attendants, and airline workers in general, should probably be seriously looking at new careers outside of the industry while they might still have first-mover advantage.
“Don’t be shy about pulling something from the trash”
Spoken as they’re trying to pull the entire airline out of the garbage can.
1990,
I respect your different political persuasions but the US economy is working for MANY -not most – people and not working for MANY – not most others.
other companies including Walmart are dealing w/ changes in how different sectors are able to spend their money as well as the tariff environment – which continues to have far less impact on the economy as a whole than alot of people feared – have managed to transition and adapt.
Spirit, like other airlines, did not recognize the changes in the airline business – but that is true about WN and others including B6 that had multiple unworkable strategies.
Some companies drive change – and in the post-covid era, DL has, once again, been the change driver; others adapt well – which would include UA; and many others including NK are not adapting and paying a price for their failure to adapt.
@1990 yes Spirit’s typical customer is feeling real economic pain. They have been living on credit cards and eight year car loans and now the “bill has come due.” Number one they can’t even afford the extra $100 for a cheap airline ticket and number two Spirit and Frontier can’t make money on a $100 airline ticket and have no other real sources of revenue.
So Spirit and Frontier want to go more upscale but that segment of the market is very much impacted by what they see on social media. Whether right or wrong, fair or unfair what they see is what they react to.
That how an airline ends up with a negative operating margin of more than (18%) in one of the stronger quarters. Frontier isn’t that far behind.
that’s the same 101 list American sent to it’s FA’s when Tom Horton Filed bankruptcy, all while he was accepting a $17Million bonus for telling employees to go dumpster dive. but we all know that the executive class never suffer, and usually profit well from the damage they inflict on the business.
@Tim Dunn — While I appreciate your loyalty to the company, Delta’s gonna struggle through this, too. We recognize that it is unlikely that this administration will help people or businesses this time. So, yes, sadly, there will be bankruptcies, mergers, and acquisitions. Usually workers and consumers face those consequences directly; management will get their golden parachutes, and the big players in the capital class will be just fine, as usual. Wish it were better than that.
@George Romey — It’s going to be interesting to follow this, as it develops. I’ve flown the Big Front Seats, which are nice to have the extra room; it’s been a while, but I’ve also been on Frontier, mostly when flying the +4 hours between FL-CO. I agree with @Mike Hunt who has pitched SWA also adding a First Class (recliners). All that is good stuff; more options, competition in the ‘comfort’ space (without being ultra ‘premium,’ like lie-flats, etc.) However, if Spirit goes under soon, we’re going to miss out on some of that competition.
I presume, like me, you pay off all your cards, don’t hold excessive debts (mortgages, student loans, etc.), and have made wise investments over the years, maybe even enjoyed the appreciation of your real estate, etc. You and I may be ‘fine,’ short term and long term, but at what point does that bottom 90% continue to get so screwed that they practically have ‘nothing to lose,’ because I’m no fan of the kind of chaos that brings. So, instead of denigrating these less fortunate people, I’d prefer to see us develop public (and business) policies that fill from the bottom up, not the top down. Because of that, I’ll continue to advocate for workers and consumers on here.
Let’s keep privatizing airports so they can further jack up all the fees until only 3 airline remain so they an in turn jack up prices and then airports can do the same.
There is nothing any more that’s common good. I flew them a couple of times; bought a big seat and it was great – had to cancel a refundable flight once only to find out that their fees were as much as as paid for it….so not ideal….but they keep competition providing affordable fares for all.
Long-term, the market tends to find alternatives. A potential revival of buses and passenger rail. Increased telecommuting. Tourist dollars that stay closer to home.
1990,
the simple reality is that the economy and how companies are managing to it is not equal between companies.
It isn’t about loyalty to anything or anybody but making customized rather than broad-brush statements.
It could be just luck or it could be that DL saw that the world would look different post covid and led that transformation.
again, some companies lead, some get dragged into change and don’t succeed, and then some companies force change.
I believe DL is in the last camp and NK is in the next to last group.
while many of us don’t wish to fly spirit the reality is watch what you wish for haters
Your coach ticket now 250 to 299 may be 699 when they go belly up
Sad
@Tim Dunn — I’ll admit it, I prefer Delta as a passenger, card holder, and elite flyer these days; I’ve said many times on here, both what I like and don’t like. I don’t hold back. You don’t either. Keep it goin.
As for the economy (and policy), you bet nothing is equal, nor does it ‘need’ to be, unless it’s ‘before the law,’ which we should all get behind, as a concept and in-practice. The recent rounds of ‘pay the bribe’ favoritism, a la Tim ‘Apple’ Cook bringing his company’s golden idol tribute to our Dear Leader in return for special tariff exemptions… doesn’t feel very ‘equal (before the law)’ to me.
Is that ‘customized’ enough? If not, that’s fine, because little of what we say on here is making a huge difference out there, though, I’d like to think at least we ‘care’ here.
After watching the Senate hearings with the CEOs of 3 major low/ultra low cost carriers and the major carriers, I’m surprised that the LCC/ULCC are still in business. They incentivize their gate agents to arbitrarily tag a CUSTOMER for additional fees for baggage, whatever. One person may get a $15.00 carry on charge and the very next a $99.00 charge. The gate agent gets a bonus on the paycheck for this crooked way of doing business. The sooner that the crooked LCCs and ULCCs go out of business, then the seemingly sleazy customers won’t be able to afford the major carriers and will travel by bus or rail. Buh bye!
I wonder how many legacy airlines are willing to employ these soon to be ex-Spirit guttermuppet flight attendants? My guess is not too many. Looks like they’ll get their wish and they won’t have to worry about “I dont get paid for boarding”, “You bring it you sling it”, “Flight attendants are to save your ass (lie) and not kiss it” and a bunch of other things that they squak about. They’ll have freedom at last and back to the hood they go!!!!
@Jake Rafterman @CHRIS — Got anything better than just ‘sucker-punching’ the workers? Lest you forget these LLCs going out of business means less competition, higher fares at the airlines that remain… great for @Tim Dunn’s Delta, but not-so-great for those of us who pay to fly…
@1990
That’s fine. I can afford it.
@CHRIS — Cha-ching! And if you like to be up-front, you’ll want to join the WFBF-club. @Gene, we may have a new member! Bah…
@1990
I’m already a member ma’am.
@CHRIS — ‘Thank you for your service.’
Spirit & Frontier going under? Good riddance & back of the bus please.
JetBlue going under? Unfortunate as they are a classy group of stellar employees on the front line.
Southwest? Stellar front line staff & Herb is rolling in his grave. Unbelievable.
Commercial airline careers? Not something I’d want my children to pursue. Ever.
@Johnmcsymthe — I agree with you on jetBlue; would really hate to see them go under. For US carriers, Mint may actually be one of the best products around at the moment.