Spirit Airlines has been struggling financially for quite a while but, could the end finally be near for the beleaguered ultra-low-cost carrier (ULCC)?
Spirit Airlines May Not Have the Funding to Make it Through the Weekend
Spirit Airlines is currently working its way through its second bankruptcy in under a year. The struggling carrier is facing a December 13, 2025 bankruptcy funding deadline which it shows no signs of actually being able to meet.
As first reported by The Air Current, Spirit’s debtor-in-possession financing requires the airline to come up with either plans for a sale or a standalone reorganization plan. Either one of these must be acceptable to the carrier’s lenders for them to release funding. The next funding deadline is tomorrow yet, as of now, no plan has been filed.
At stake here is $100 million in funding that is critical to the airline’s ability to operate. Without the cash, Spirit could go dark as early as this weekend. It is being reported that multiple airline executives are planning for that exact scenario.
Spirit has been struggling mightily; laying off employees, cutting routes, and returning aircraft. The Florida based ULCC is burning through millions of dollars per day with no end in sight. The airline rejected merger opportunities with Frontier during its first bankruptcy last year and a new suitor has not yet been found.
Regardless of whether or not Spirit gets the funding it needs, the airline has no real direction or way to turn a profit. It will likely end up being sold off for parts as its aircraft and ground assets are more valuable than the company itself. For those that work at and are traveling on the airline this holiday season, this is a very unfortunate situation and I wish them all the best.
Summary
Spirit Airlines is reportedly on the brink of collapse, with the carrier’s future tied to the release of $100 million in funding that will only be released by the bankruptcy court if plans for a sale or a standalone reorganization plan with acceptable terms to lenders are presented by a December 13, 2025 deadline.