Spirit Airlines Files for Second Bankruptcy in Under a Year, Operations Unaffected for Travelers

Budget carrier Spirit Airlines announced Friday its second filing for Chapter 11 bankruptcy protection within a year, just months after emerging from a previous reorganization. Despite the filing, the airline assured passengers that business operations would continue as normal, allowing them to book flights, use existing tickets, credits, and loyalty points without interruption. Employees and contractors are also expected to continue receiving payments.

Spirit CEO Dave Davis stated that while the previous Chapter 11 petition focused on debt reduction and capital raising, the period since its March exit revealed “much more work to be done” to best position the airline for the future. This move follows a quarterly report issued earlier this month by parent company Spirit Aviation Holdings, which expressed “substantial doubt” about its ability to continue as a going concern, citing “adverse market conditions” and persistent weak demand for domestic leisure travel.

The airline, known for its no-frills, low-cost model, has struggled significantly since the COVID-19 pandemic, battling rising operational costs and mounting debt. Its initial bankruptcy filing was in November, with the company losing over $2.5 billion since early 2020. After successfully restructuring debt and securing new financing in March, Spirit continued cost-cutting measures, including recent plans to furlough approximately 270 pilots and downgrade 140 captains, effective October 1 and November 1, 2025. Facing ongoing cash needs, Spirit may also consider selling aircraft and real estate. The airline has also been exploring new revenue streams, such as tiered pricing for more upscale travel options, as it navigates a challenging competitive landscape where larger airlines increasingly offer budget-friendly alternatives.

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