Spirit Airlines has filed for bankruptcy protection for the second time in less than a year, announcing Friday it’s entering another Chapter 11 process while assuring customers and employees that operations will continue.
Flights will still operate, tickets and loyalty rewards remain valid, and staff will continue to be paid during the restructuring, according to the budget airline.
CEO Dave Davis said this second filing is necessary to go further than the initial reorganization completed 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,” Davis said.
Spirit’s parent company recently raised red flags about its financial health, citing “substantial doubt” about its ability to stay afloat over the next year. The airline has faced ongoing challenges, including soft demand for domestic leisure travel, higher operating costs, and continued uncertainties.
After emerging from bankruptcy earlier this year, Spirit secured new financing and restructured some debt. However, in July, the company announced pilot furloughs and captain downgrades planned for October and November to align with its future flight schedule.
To stay afloat, Spirit may sell aircraft and real estate as part of its latest restructuring efforts. Despite its younger fleet and past interest from potential buyers like JetBlue and Frontier, no takeover deal has materialized.
Spirit currently serves 88 destinations across the U.S., Latin America, and the Caribbean with over 5,000 flights.
