Spirit Airlines Files Chapter 11 Bankruptcy Again Amid Restructuring Plans

Spirit Airlines has filed for Chapter 11 bankruptcy protection for the second time in less than a year, citing ongoing financial struggles despite its previous restructuring in March 2025. The airline plans a comprehensive restructuring focused on shrinking its fleet, cutting unprofitable routes, and concentrating operations on core, profitable markets to reduce costs by hundreds of millions annually. Spirit will maintain normal operations throughout the bankruptcy process, allowing passengers to use existing tickets, credits, and loyalty benefits without interruption. CEO Dave Davis emphasized that the court-supervised process is necessary to secure the airline's long-term viability amid high costs, weak U.S. domestic travel demand, and challenges such as the failed JetBlue merger and engine issues. Since emerging from its last bankruptcy, Spirit has lost significant money and faces intense competition from rivals like Frontier Airlines. The airline aims to realign its business model for sustainable growth while working closely with creditors and stakeholders during the restructuring.