Spirit Airlines, known for its low-cost travel model, filed for Chapter 11 bankruptcy protection on Friday, facing significant financial challenges since its exit from a prior bankruptcy in March. The airline reported that it will continue operations, including flights, ticket sales, and reservations.
Since emerging from its previous reorganization, Spirit has attempted to reposition itself as a higher-cost airline to adapt to changing travel preferences post-pandemic. However, these efforts were hindered by external factors such as reduced consumer spending following economic uncertainties, including tariffs and budget cuts. Earlier this month, the airline had expressed concerns about its ongoing viability.
CEO Dave Davis noted the necessity of further action to strengthen Spirit’s future despite the previous restructuring aimed at reducing debt and raising capital. The airline’s first bankruptcy filing occurred in November, marking a significant downturn after years of financial struggles, including failed merger attempts and accumulating debt. In the past year, Spirit recorded a net loss of $1.2 billion, exacerbated by the collapse of a $3.8 billion merger with JetBlue Airways and technical issues with its Pratt & Whitney engines that required grounding of several Airbus jets.
Originally founded in 1964 as a long-haul trucking enterprise, Spirit transitioned to the airline industry in the 1980s and began operating as Charter One Airlines. It rebranded as Spirit in 1992 and established itself as a budget airline, appealing to travelers who preferred lower fares in exchange for limited amenities. However, the pandemic challenged this business model, making it difficult for ultra-low-cost carriers to meet shifting consumer expectations for travel experiences.
Source: https://www.theguardian.com/business/2025/aug/29/spirit-airlines-bankruptcy-protection