Spirit Airlines Files for Chapter 11 Bankruptcy Protection for Second Time in Less Than a Year
- Avaitors Maldives
- Sep 2
- 2 min read
Spirit Airlines has filed for Chapter 11 bankruptcy protection for the second time in under twelve months, underscoring the persistent financial headwinds facing the ultra-low-cost carrier. The filing, made in the US Bankruptcy Court for the Southern District of New York on 29 August 2025, follows the airline’s emergence from a prior restructuring process in March that failed to deliver long-term stability.

Despite the filing, Spirit has confirmed that flight operations will continue uninterrupted. Customers may still book travel and redeem tickets, credits, and loyalty points. Employee wages and benefits will also be maintained throughout the court-supervised process.
The airline emphasized that the restructuring aims to address deeper structural challenges that were not resolved during its previous Chapter 11 process, which focused primarily on debt reduction and equity recapitalization. “It has become clear that there is much more work to be done and many more tools are available to best position Spirit for the future,” said CEO Dave Davis.
As part of its renewed restructuring strategy, Spirit plans to significantly downsize its fleet and reduce its presence in select markets. The carrier estimates these changes will generate hundreds of millions of dollars in annual operating savings. The airline is also redesigning its network to focus on profitable demand and enhance connectivity in key focus cities.
Spirit’s total operating expenses in the most recent quarter reached $1.2 billion, 118% of its quarterly revenue highlighting the urgency of cost containment measures. The company has also been engaged in disputes with aircraft lessors and is exploring asset sales, including aircraft and real estate, to improve liquidity.
Spirit’s financial challenges have created opportunities for competitors, with carriers such as Frontier Airlines reportedly expanding routes and expressing interest in acquiring Spirit’s aircraft and other assets. The broader US domestic market has seen softening leisure travel demand and elevated operating costs, which have disproportionately impacted low-cost carriers.
The airline’s prior attempt to merge with JetBlue Airways was blocked by a federal court in early 2024 on antitrust grounds, eliminating a potential lifeline and leaving Spirit to navigate recovery independently.
While Chapter 11 provides a legal framework for restructuring, Spirit’s second filing in less than a year raises questions about the viability of its standalone business model. The airline maintains that the process will allow it to become more strategic in fleet planning, market selection, and product offerings, without compromising its core mission of accessible air travel.
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