Spirit Airlines Declares Bankruptcy for the Second Time Within a Year
Spirit Airlines, a budget carrier recognized for its bright yellow planes and ultra-low-cost model, filed for Chapter 11 bankruptcy protection on Friday. This comes just five months after the airline emerged from its previous bankruptcy reorganization in March. Since exiting its first bankruptcy, the airline has grappled with mounting losses, a weak demand for domestic leisure travel, and cash flow issues.
The airline has assured its customers that it will continue to operate normally during the restructuring process. Passengers will be able to use their tickets, credits, and loyalty points as usual. Spirit Airlines is planning to implement more aggressive cost-cutting measures this time around. These measures include a reduction in fleet and a redesign of the route network.
Since March, the airline has burned through nearly $257 million and recently issued a warning that it might not survive another year without a significant cash infusion.
[via href=”https://www.cnbc.com/2025/08/29/spirit-airlines-chapter-11-bankruptcy.html”]Source: CNBC[/via]