United Airlines CEO predicts end of Spirit Airlines amid second bankruptcy

Spirit responded to Kirby’s comments by highlighting new offerings: "Scott is finally right about something - it is all about customers. Our Guests love low fares, especially our new Spirit First and Premium Economy options." The airline also commented on social media: "maybe that’s why United executives can’t stop yapping about us."

Despite emerging from Chapter 11 proceedings in March with a restructured product offering and network, Spirit reported a $245 million net loss for Q2 2025—greater than the $192 million loss posted in the same period last year. Prior to its latest bankruptcy protection filing in August, the company warned it might not be able to continue without significant financial improvement.

Frontier Airlines, another US discount carrier, also posted larger-than-expected losses for Q2 2025 despite record revenues earlier in the year. Rising costs and lower average fares contributed to continued net losses among low-cost carriers.

Low-cost airlines often operate on thin margins and are sometimes criticized for revenue-maximizing tactics such as charging extra fees for seats or baggage. In Spirit’s case, more than half of its revenue comes from ancillary fees rather than base ticket sales.

Spirit CEO Dave Davis acknowledged ongoing challenges: "there is much more work to be done" with efforts underway to turn things around following its previous restructuring that converted nearly $800 million in debt into equity.

As part of recent changes, Spirit announced plans to discontinue flights to 11 US cities: Albuquerque (ABQ), Birmingham (BHM), Boise (BOI), Chattanooga (CHA), Columbia (CAE), Oakland (OAK), Portland (PDX), Sacramento (SMF), Salt Lake City (SLC), San Diego (SAN), and San José (SJC). The airline has listed dozens of Airbus A320ceo aircraft for sale and intends to seek new leasing agreements while considering downsizing measures. It has also borrowed $275 million under its revolving credit facility.

United Airlines continues operating as a full-service carrier with major hubs including Chicago O'Hare International Airport, Denver International Airport, Houston George Bush Intercontinental Airport, Los Angeles International Airport, Newark Liberty International Airport, San Francisco International Airport, Washington Dulles International Airport, and Guam International Airport. Founded in 1931, United uses IATA code UA and ICAO code UAL.