Spirit Aviation Holdings (FLYY) stock, the parent company of troubled Spirit Airlines, tumbled on Tuesday after the airline operator said it was running out of cash and could soon go out of business.
“The Company has continued 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,” Spirit said in its second quarter financial disclosure. “As a result, the Company continues to experience challenges and uncertainties in its business operations and expects these trends to continue for at least the remainder of 2025.”
Though the company was trying to alleviate its financial situation with initiatives such as pilot furloughs, spare engine sales, and potential sales of aircraft, real estate, and excess airport gate capacity, the “uncertainty of successfully completing the initiatives” meant that management felt there was “substantial doubt as to the Company’s ability to continue as a going concern” over the next 12 months.
Spirit Aviation stock cratered over 40% in midday trade, while shares of major operators like Delta (DAL), American (AAL), and United (UAL) surged nearly 10%.
Credit: Pras Subramanian
