Spirit Airlines files for bankruptcy again. What you need to know
Spirit Airlines will keep flying after filing for Chapter 11 bankruptcy restructuring on Friday, just five months after exiting its last restructuring.
The Dania Beach, Florida-based budget airline said in a letter to flyers that it will continue flying, and that they can continue to use all "tickets, credits and loyalty points." All other passenger benefits, including Savers Club and credit card perks, remain available for use as well.
"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 Dave Davis, president and CEO of Spirit, in a statement Friday. "After thoroughly evaluating our options and considering recent events and the market pressures facing our industry, our Board of Directors decided that a court-supervised process is the best path forward to make the changes needed to ensure our long-term success."
Spirit lost $186 million during the three-and-a-half months from mid-March, when it exited its last bankruptcy restructuring, through the end of June. That is normally a peak time for budget travel that includes spring break.
The airline warned investors on Aug. 11 that there was "substantial doubt as to the company's ability to continue as a going concern within 12 months."
Davis said Spirit plans to undergo a "comprehensive" restructuring this time. Its last bankruptcy filing in November 2024 focused primarily on the carrier's debt.
Spirit said in a statement that comprehensive restructuring would include a route map redesign centered on key focus cities, shrinking the airline's fleet, and reducing costs.
The airline's five largest destinations by flights in the third quarter, based on schedules from aviation analytics firm Cirium, are:
- Fort Lauderdale-Hollywood International Airport (FLL)
- Orlando International Airport (MCO)
- Harry Reid International Airport (LAS) in Las Vegas
- Detroit Wayne County Metropolitan Airport (DTW)
- Newark Liberty International Airport (EWR)
Spirit's schedule is more than a quarter smaller during the three months ending in September compared to the same period in 2024, Cirium data shows.
The carrier flew 215 Airbus A320-family planes at the end of June, its latest quarterly financial filing shows.
Other airlines are not waiting for Spirit to restructure or, in a worst-case scenario, fail. Frontier Airlines recently unveiled 20 new routes that include many in Spirit markets. And analysts believe other carriers, including JetBlue Airways, Sun Country Airlines and United Airlines, could be interested in Spirit's gates and facilities at various airports like FLL and DTW.
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- This is a pay-in-full card, so your balance is due in full every month