The US budget airline that could close in the next 12 months

The US budget carrier Spirit Airlines remains at serious risk of shutting down.

The company, known for its cheap flights and occasionally poor service, has publicly acknowledged that unless very specific conditions improve, it may be forced to cease operations within the next 12 months—potentially affecting many travelers who regularly fly with the airline.

In a recent disclosure to investors, Spirit warned that it has not been able to recover or return to profitability following the financial collapse it announced in early 2025. Now, eight months later, the situation has not improved, and the airline says it may need to take drastic measures.

Spirit said in its most recent quarterly financial report released in mid-August that the company continues “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.”

Executives warned that they do not expect the “challenges and uncertainties” to resolve themselves in 2025.

Spirit Airlines could declare bankruptcy

The airline also outlined some of the steps it’s taking to avoid closure, including restructuring its route network and adding more premium seating options, as demand for more comfortable travel remains strong.

In July, Spirit announced that they would “downgrade approximately 140 Captains to First Officers and furlough approximately 270 pilots, effective October 1, 2025 and November 1, 2025, respectively to align with its projected flight volume for 2026.”

Now, the company says it’s also considering selling some of its aircraft and airport gate slots to other airlines—though it admits even that may not be enough.

“While it is the Company’s goal to execute on these initiatives, there can be no assurance that such initiatives will be successful,” Spirit leaders noted that their “management [team] 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.”

Will this news impact passengers with existing bookings?

For travelers with existing bookings, there is no immediate risk of flight cancellations. However, those planning to book further in advance may want to consider purchasing travel insurance or exploring alternative airlines.

Industry experts warn that Spirit’s potential exit from the US aviation market could hurt consumers nationwide.

“Ultra-low-cost carriers are the leaders in keeping fares down. Consumers benefit when low-cost airlines continue to operate and succeed,” said Henry Harteveldt, president of Atmosphere Research, a travel industry analysis firm, in an interview with USA TODAY. If Spirit disappears, experts caution, airfare prices are likely to rise in the markets where the airline currently operates.

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