Spirit Airlines has filed for bankruptcy protection for the second time in a year, citing ongoing challenges in the competitive U.S. leisure travel market. The company previously entered bankruptcy in November and emerged by March, but warned investors earlier this month that it continued to face significant threats from competition and weak demand.
Spirit CEO Dave Davis addressed the decision in a statement on Friday. “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,” Davis said. He added: “We have evaluated every corner of our business and are proceeding with a comprehensive approach in which we will be far more strategic.”
The airline plans to use this new Chapter 11 filing to implement further changes, including cost reductions, adjusting flight schedules to focus on key markets, reducing its fleet size, and expanding efforts to attract premium travelers.
Spirit has not reported an annual profit since 2019 and has lost over $2 billion during the past five years. In 2022, Spirit attempted a merger with Frontier Airlines, but JetBlue Airways made a competing offer that was ultimately blocked by a federal judge.
Other factors contributing to Spirit’s difficulties include increased domestic competition and operational issues such as unexpected engine inspections on some Airbus aircraft.
In an open letter to customers on Friday, Spirit described the latest bankruptcy filing as a “proactive step to build a stronger foundation and future for our company.” The airline assured passengers that flights would continue as scheduled and that tickets, credits, and loyalty points would remain valid.
Bankruptcy filings are not uncommon among U.S. airlines; American Airlines, Delta Air Lines, and United Airlines have all restructured through bankruptcy within the last two decades. These larger carriers have benefited from strong demand for premium and international travel and have introduced their own low-cost ticket options that compete directly with budget airlines like Spirit.
