Spirit Airlines files for bankruptcy again but vows to keep flying
[August 30, 2025] By
RIO YAMAT
Budget carrier Spirit Airlines said Friday that it has filed for fresh
bankruptcy protection months after emerging from a Chapter 11
reorganization.
The ultra low-cost airline said it plans to keep flying as usual during
the restructuring process, meaning passengers can still book trips and
use their tickets, credits and loyalty points. Employees and contractors
will also continue to get paid, the company said.
CEO Dave Davis said the airline's previous Chapter 11 petition focused
on reducing debt and raising capital, and since exiting that process in
March, “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.”
Flight attendants, meanwhile, were warned by union leaders to "prepare
for all possible scenarios.”
“We are being direct because even as we have many ways to fight because
of our union, we also want to get you the truth about the situation at
our airline and how each of us can take actions to protect and prepare
ourselves for any challenge,” the Association of Flight Attendants said
Friday in a letter to its members.
Spirit, known for its bright yellow planes and no-frills service, has
had a rough ride since the COVID-19 pandemic, struggling to rebound amid
rising operation costs and its mounting debt. By the time of its first
Chapter 11 filing in November, Spirit had lost more than $2.5 billion
since the start of 2020.
The airline now carries $2.4 billion in long-term debt, most due in
2030, and reported a negative free cash flow of $1 billion at the end of
the second quarter.
Friday's news comes as budget carriers like Spirit are under pressure by
bigger airlines, which have rolled out their own low-cost offerings.
Spirit, meanwhile, is attempting to tap into a growing market for more
upscale travel with its new tiered pricing that includes more perks on
the higher end.
[to top of second column] |
A Spirit Airlines 319 Airbus taxis at Manchester Boston Regional
Airport, Friday, June 2, 2023, in Manchester, N.H. (AP Photo/Charles
Krupa, File)
 But in a quarterly report issued
earlier this month, Spirit Aviation Holdings, the carrier's parent
company, revealed that it had “substantial doubt” about its ability
to stay in business over the next year. The company cited “adverse
market conditions" the company faced after its most recent
restructuring.
That included poor demand for domestic leisure travel and
“uncertainties in its business operations” that the Florida company
expected to continue through at least the end of 2025.
Spirit's cost-cutting efforts continued after emerging from
bankruptcy protection in March, including plans to furlough about
270 pilots and downgrade some 140 captains to first officers in the
coming months.
Those changes, which go into effect Oct. 1 and Nov. 1, were tied to
expected flight volumes in 2026, the company has said. They also
follow previous furloughs and job cuts before the company's
bankruptcy filing last year.
Despite the cuts, Spirit has said it needs more cash. As a result,
the company said it was considering selling off certain aircraft and
real estate.
Spirit’s fleet is relatively young, which has made the airline an
attractive target. But buyout attempts from budget rivals like
JetBlue and Frontier were unsuccessful both before and during
Spirt's first bankruptcy process.
Spirit operates 5,013 flights to 88 destinations in the U.S., the
Caribbean, Mexico, Central America, Panama and Colombia, according
to travel search engine Skyscanner.net
All contents © copyright 2025 Associated Press. All rights reserved |
