FTI Consulting Navigates Spirit Airlines Through Renewed Financial Distress

The restructuring specialist FTI Consulting finds itself at the heart of another critical assignment, guiding Spirit Airlines through a severe liquidity crunch that has emerged just months after the carrier exited Chapter 11 bankruptcy protection.

Persistent Financial Struggles Cast Doubt on Future

Contrary to expectations of stability following its March 2025 restructuring, Spirit Airlines now faces an uncertain future. The company has publicly expressed significant doubt regarding its ability to continue as a going concern over the coming twelve months.

Key financial metrics paint a stark picture of its deteriorating position:
– A net loss of $245.8 million for the second quarter of 2025
– Cumulative losses nearing $257 million since its bankruptcy exit
– A consistent downward trajectory that has defied earlier profit projections

Industry Headwinds Batter Low-Cost Carrier

Spirit Airlines, like others in the ultra-low-cost carrier segment, is confronting substantial industry challenges. Company leadership cites weak domestic demand and excessive market capacity as primary drivers of what it describes as a “challenging pricing environment.”

Should investors sell immediately? Or is it worth buying FTI Consulting?

The operational and financial consequences have been severe:
– Operating revenues have plummeted by 20.4%
– Unrestricted liquidity reserves have dwindled to just $407.5 million
– The company has fully drawn upon its $275 million credit facility
– Its credit card processor is now demanding additional collateral

Credit rating agency Moody’s responded to these developments by downgrading Spirit’s credit rating two notches further into junk territory. The agency cited accelerated cash burn rates and persistently weak demand as justification for the action.

Strategic Asset Liquidation Under Consideration

In response to these pressures, Spirit is evaluating the potential sale of multiple asset classes including aircraft, leasing contracts, and real estate holdings. This strategic shift positions FTI Consulting’s expertise at the forefront of the airline’s survival efforts.

The consulting firm’s specialists are now tasked with steering the carrier through complex divestment decisions and identifying pathways to operational and financial stabilization. This engagement highlights the aviation industry’s growing reliance on specialized turnaround consultants during periods of extreme market disruption.