Competition Prepares to Step In As Spirit Claims Business As Usual

Spirit Airlines can’t seem to stay out of the industry spotlight, this time after a report suggested the ultra-low-cost carrier could be just days away from closing its doors. Unnamed industry sources allegedly claimed that at least two competitors are quietly preparing contingency plans to absorb stranded passengers if Spirit is forced to shut down amid the holiday travel spike.

The report, published December 12, describes Spirit as being at “imminent risk” unless it can secure roughly $100 million in emergency financing. Failure to do so could result in an abrupt halt to operations, potentially impacting thousands of flights booked through at least December 20. For travelers, that would mean canceled flights with little warning and limited rebooking options during peak holiday demand.

Spirit’s financial troubles are no secret. The airline has not earned a profit since 2019 and, instead, has lost roughly $2.5 billion since 2020. It first filed for Chapter 11 bankruptcy in November 2024, becoming the first major US carrier to do so in more than a decade, then exited restructuring in March with high hopes for future success. That optimism didn’t last long, with Spirit filing for bankruptcy again in August.

Since then, cost-cutting measures have picked up speed. Spirit has exited numerous hubs, reduced its network footprint, and furloughed hundreds of pilots, with more scheduled for next January. Its parent company, Spirit Aviation Holdings, has publicly acknowledged “substantial doubts” about the airline’s ability to continue as a going concern over the next year, even as leadership predicts profitable operations by 2027.

Competitors appear to be taking the risk seriously. A recent report alleges that at least two major US airlines are preparing schedules to backfill canceled Spirit flights and offer so-called rescue fares to displaced passengers.

And through it all, Spirit is maintaining its usual composure.

“There is no truth to any rumors that we are preparing to cease operations. It is business as usual at Spirit, and flights continue to operate normally,” a statement from a Spirit spokeswoman said. “We are working closely with our debtor-in-possession providers and other key stakeholders on a wide variety of issues to support the financial needs and future of the business, as we have been throughout our restructuring process.”

FMI: www.spirit.com