Spirit Airlines Files Second Bankruptcy Amid $2 Billion Debt, Fleet Cuts Planned

Spirit Airlines, a leading ultra-low-cost carrier based in Dania Beach, Florida, filed for Chapter 11 bankruptcy protection for the second time in less than a year due to mounting financial difficulties, including high operating costs, declining domestic demand, and unresolved issues like engine recalls and a failed merger with JetBlue. Despite emerging from bankruptcy in March with reduced debt and new equity, the airline reported a significant loss in the second quarter and acknowledged that its prior restructuring focused mainly on debt reduction was insufficient to stabilize operations. Spirit plans to continue flights and maintain customer services, including ticket and loyalty program benefits, but intends to shrink its fleet and network to save hundreds of millions of dollars annually, potentially impacting service levels at key airports like Fort Lauderdale-Hollywood International Airport. The airline's financial woes have caused its stock to plummet and are prompting a possible delisting from the NYSE, with shares expected to be canceled during the restructuring. CEO Dave Davis emphasized that a court-supervised restructuring is necessary to secure the company's long-term success amid ongoing industry pressures, including challenges from tariffs and budget cuts under President Donald Trump's administration. Competitors like Frontier Airlines are expanding routes, intensifying competition as Spirit attempts to realign its business model and preserve its position in the market.