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.