Spirit Airlines ends Q3 with a $317.4 million net loss
Despite its progress in its Chapter 11 case, Spirit Airlines expressed substantial doubt about its ability to continue operating.
Spirit Airlines has published its Q3 2025 financial results, with the airline, still in the middle of its second Chapter 11 bankruptcy case in a year, expressing “substantial doubt about” its ability to continue operations.
On November 10, Spirit Airlines unveiled its Q3 results, revealing that it ended the three-month period with a net loss of $317.4 million, on the back of $958.5 million of revenues and over $1 billion of operating expenses.
Despite the operating loss of $134.9 million, its results were further bogged down by $180.9 million of other expenses, which include a $125.9 million loss related to reorganization expenses. Still, in a somewhat positive development, Spirit Airlines’ Q3 operating margin improved from -24.8% to -14.1%, despite revenues in Q3 2024 being $1.1 billion.
During the three-month period, Spirit Airlines’ average aircraft was 214.2, up 0.8% year-on-year (YoY), yet capacity, measured in available seat miles (ASMs), was down 24.1% YoY.
The airline said its capacity decreased “due to a decrease in the number of active aircraft, as well as lower aircraft utilization.”
Daily utilization had been an average of 7.3 hours per day during the quarter, compared to 10 hours throughout Q3 2024. Total departures also contracted by 24.9%, while load factors were 6.2% lower YoY.
“The lower number of active aircraft, coupled with a higher average number of aircraft on ground (‘AOG’) and our decision to reduce scheduled flying on off-peak travel days, contributed to the overall decrease in utilization compared to the prior-year period.”
An additional positive development was the airline’s yields and fare per passenger. The average yield improved by 14% to 12.15¢, while the total revenue per passenger segment grew from $104.75 to $118.53.
Spirit Airlines, which is undergoing its second Chapter 11 bankruptcy case in less than a year, said that, despite obtaining a debtor-in-possession (DIP) financing facility and removing some of its aircraft leases from its balance sheet, the outcome of its court-protected reorganization remains outside of its control.
“We can give no assurances that we will be able to secure additional sources of funds to support its operations, or, if such funds are available to us, that such additional financing will be sufficient to meet our needs.”
As a result, the airline’s management, which includes David Davis, the President and Chief Executive Officer (CEO) of Spirit Airlines, who assumed his role in April, a month after the company emerged from its previous Chapter 11 case, “believes there is substantial doubt about our ability to continue as a going concern.”
Rytis Beresnevicius
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