Spirit Airlines has filed for Chapter 11 bankruptcy protection — again — just five months after emerging from its last bankruptcy in March.
The budget airline, recognizable for its yellow fleet and stripped-down fares, shared the update on Friday as it works through ongoing financial struggles.
Despite its ongoing struggles, the Florida-based airline says flights, bookings, and operations will continue as normal for now.
According to CBS News, the airline assured customers that tickets, travel credits, and loyalty points remain valid, while also confirming that staff and contractors will keep receiving pay.
CEO Dave Davis admitted that Spirit's first bankruptcy filing didn't go far enough. "Since emerging from our previous restructuring, which was targeted exclusively on reducing Spirit's funded debt and raising equity capital, it has become clear that there is much more work to be done," Davis said.
Earlier this month, Spirit cautioned investors that its future over the next year remains uncertain, raising concerns about the company's ability to stay afloat.
The airline cited ongoing challenges, including weak demand for domestic leisure travel and economic uncertainty, particularly in the US market.
‘No-frills pioneer Spirit Airlines filed for fresh bankruptcy protection on Friday, as dwindling cash and mounting losses derailed its turnaround efforts since emerging from a previous Chapter 11 reorganization in March.’
— The Daily Sneed™ (@Tr00peRR) August 29, 2025
- NY Post
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Spirit Airlines Faces Fresh Setback After $1.2B Loss in 2024
Spirit has faced headwinds since the start of the COVID-19 pandemic. The airline lost over $2.5 billion between 2020 and 2023.
Its attempt to recover this year was further hurt by rising costs, failed merger attempts, and lower fares across the industry.
In 2024, Spirit posted a $1.2 billion net loss, made worse by the collapse of its planned $3.8 billion merger with JetBlue Airways and issues with Pratt & Whitney engines that grounded parts of its fleet, CNN reported.
Not long after, the airline rolled out cost-cutting measures, which included plans to furlough 270 pilots and reassign 140 captains to first officer roles. These changes will go into effect in October and November.
Despite these efforts, Spirit says it still needs more money. The company may sell aircraft and real estate to raise funds.
Spirit tried to respond by offering new ticket tiers with added amenities, but the changes haven't been enough to turn things around.
The airline currently operates over 5,000 flights to 88 destinations across the U.S., Latin America, and the Caribbean.
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