Spirit Airlines files for bankruptcy again but will keep flying
History is repeating itself for Spirit Airlines. The ultra-low cost carrier Spirit Airlines has filed for Chapter 11 bankruptcy protection for the second time in less than a year.
The move underscores the mounting financial pressures facing the ultra-low-cost carrier. The filing, made late Friday in the Southern District of New York, comes just months after the airline exited its previous restructuring in March. Spirit had effectively entered in Chapter 11 in November 2024. S
Despite the court process, Spirit said flights, bookings, tickets, and loyalty programs would continue without disruption. Employees will keep receiving pay and benefits. “We remain committed to serving our customers while taking the difficult but necessary steps to put Spirit on a stronger footing,” CEO Dave Davis said in a statement.
Spirit has been struggling with heavy debt and steep operating losses. The airline still carries more than $2 billion in obligations, including costly aircraft leases. In the second quarter of 2025, Spirit posted a net loss of about $246 million and exhausted its $275 million credit line.
Executives said the new restructuring would be deeper than last year’s attempt. Plans call now to shrink the fleet, cut routes, and focus more on core hubs such as Fort Lauderdale, Orlando, and Detroit. Spirit also intends to broaden premium seating options in hopes of attracting higher-fare passengers.
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