Spirit Airlines has a grim outlook for its future. The airline said it may not be able to operate if its financial outlook doesn’t get better.

The company came out of bankruptcy earlier this year, but demand for its flights has been lower than expected, The Wall Street Journal reported.

Spirit this week said it has taken steps to offset the lack of demand by rolling out cost savings, adding premium economy travel and furloughing pilots, according to the newspaper.

Last month, it laid off 270 pilots to save money and will consider selling some planes or gate capacity to other airlines, USA Today reported.

But that may not be enough to save the airline, with company officials saying that it will feel the pressure for the rest of the year.

“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. 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,” the company said, according to USA Today.

“After considering the measures taken, minimum-liquidity covenants in the company’s debt obligations and credit-card processing agreement require financial results to improve at a rate faster than what the company is currently anticipating,” Spirit said in its latest securities filing on Aug. 11, according to The Wall Street Journal.

The company will be taking more steps to bring in money to make sure that it has the cash required by the end of its bankruptcy protection. If it doesn’t, then the airline may default to creditors, ABC News said.

But it may not make it.

“While it is the Company’s goal to execute on these initiatives, there can be no assurance that such initiatives will be successful,” the company said in the filing. “Management has concluded there is substantial doubt as to the Company’s ability to continue as a going concern within 12 months from the date these financial statements are issued.”

Flights that are occurring in the short term should be OK, USA Today reported, but for those with travel plans in the future that include Spirit may consider investing in travel insurance, the publication suggested.

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