Spirit Airlines Posts $143 Million Q1 Loss Following Chapter 11 Bankruptcy Emergence
Spirit Airlines just came out of bankruptcy.
Spirit Airlines has posted a $143 million loss in Q1, following its emergence from Chapter 11 bankruptcy.
According to Airline Geek, the emergence from Chapter 11 was a contributor to the airline’s massive loss. Because fresh start accounting was used, the quarterly results were split into two accounting periods: the “Predecessor” period, which ran from Jan. 1 to March 12, and the “Successor” period, which ran from March 13 to March 31.
With $257 million in total operational revenues and $259 million in operating expenses during the Successor period, Spirit experienced an operating loss of about $2 million. The ultra-low-cost airline recorded a net loss of about $11 million after deducting other non-operating expenses of $9.1 million, primarily interest payments.
The carrier reported a net loss of around $143 million for the entire quarter, which ran from Jan. 1 to March 31. Spirit Airlines clarified, however, that because of the reset in financial reporting, results from the Predecessor and Successor time periods cannot be directly compared.
Spirit reported a loss of more than $1 billion for the entire year 2024.
Despite coming out of bankruptcy, Spirit highlighted continuing financial troubles in its “Going Concern” report. Spirit is still dealing with “a challenging pricing environment,” according to the report, and it anticipates that these challenges will last at least the rest of 2025.
Spirit warned that “no assurances” can be given that these efforts will be successful or that additional funding, if needed, will be available “on terms that are acceptable,” even though management determined that Spirit will “have sufficient liquidity to meet its future cash needs” through a combination of available cash, operational cash flow, and planned initiatives.
Spirit Airlines Has a New CEO
Spirit Airlines announced in April that it had emerged from bankruptcy and appointed a new CEO, who had previously worked for rival low-cost airline Sun Country Airlines.
David Davis, a 58-year-old former president, chief financial officer, and board member of Sun Country Airlines, is currently in charge of the bargain carrier.
Spirit’s board chairman, Robert Milton, stated that Davis “brings with him a wealth of experience and a solid track record of accomplishments from his many years in the airline industry. Dave’s background at both Northwest Airlines and, more recently, at Sun Country Airlines, positions him well to lead Spirit’s continued transformation.”
