Spirit Airlines: Second Bankruptcy Filing in Under a Year
Spirit Airlines has once again filed for Chapter 11 bankruptcy protection, marking the second time in less than a year. The ultra-low-cost airline filed for bankruptcy in New York on Friday, with assets and liabilities ranging between $1 billion and $10 billion.
The filing comes a mere five months after the airline emerged from its previous bankruptcy restructuring in March. Despite earlier efforts to restructure its debt, Spirit struggled to maintain financial stability, posting a staggering loss of $186 million during the peak travel season from mid-March through June.
CEO Dave Davis emphasized that the restructuring this time will be more comprehensive. The focus will be on:
- Redesigning route maps
- Shrinking the fleet
- Reducing operational costs
The airline assured passengers that flights will continue operating normally, and travelers can still use tickets, credits, and loyalty points. However, Spirit’s shares have plummeted 72% over the past month, and the company warned it might not survive another year without a significant cash infusion.
Source: NPR