Monday, September 15, 2025

Spirit Airlines Shares Plunge on Bankruptcy Talk

Spirit Airlines (NYSE: SAVE) is in talks with creditors to improve its liquidity amid reports of potential bankruptcy, the ultra-low-cost carrier said on Tuesday, sending its shares tumbling 53%.

The Florida-based airline confirmed “constructive discussions” with a supermajority of noteholders are advancing, while warning that a failed agreement could lead to equity cancellation. The company said it is exploring all strategic alternatives.

Spirit projects its third-quarter adjusted operating margin will decline 12% year-over-year. The carrier has reported losses in five of the last six quarters despite robust travel demand.

Cost-cutting measures include plans to furlough approximately 330 pilots beginning January 31 and the sale of 23 older Airbus aircraft for $519 million, expected to generate $225 million in liquidity next year.

The airline’s stock has plunged 91% this year, contrasting sharply with the S&P 500 passenger airlines index’s 52% gain. .


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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