Airline brand Spirit files for bankruptcy protection for the second time, assuring passengers it will continue operations

Spirit Aviation Holdings, the parent company of Spirit Airlines, has once again sought refuge under Chapter 11 bankruptcy protection, citing "adverse market conditions" and "uncertainties in its business operations" that it expects to persist through at least the end of 2025.

The budget airline, known for its bright yellow planes and no-frills service, has been under pressure from bigger airlines that have rolled out their own low-cost offerings. Buyout attempts from budget rivals like JetBlue and Frontier were unsuccessful both before and during Spirit's first bankruptcy process.

Since the COVID-19 pandemic, Spirit Airlines has struggled with rising operational costs and mounting debt. By the time of its first Chapter 11 filing in November 2020, the company had lost more than $2.5 billion since the start of the year. As of now, Spirit Airlines carries $2.4 billion in long-term debt, most due in 2030.

In an effort to secure more cash, Spirit Airlines is considering selling off certain aircraft and real estate. The airline is also planning to furlough about 270 pilots and downgrade some 140 captains to first officers in the coming months. These changes are tied to expected flight volumes in 2026 and follow previous furloughs and job cuts before the company's bankruptcy filing last year.

Spirit Airlines is also attempting to tap into a growing market for more upscale travel with its new tiered pricing that includes more perks on the higher end. However, flight attendants have been warned to prepare for all possible scenarios by union leaders.

Despite these challenges, passengers can still book trips, use their tickets, credits, and loyalty points during the restructuring process. Employees and contractors will continue to get paid during this time.

Spirit Airlines operates 5,013 flights to 88 destinations, including the U.S., the Caribbean, Mexico, Central America, Panama, and Colombia, according to Skyscanner.net. The company's relatively young fleet makes it an attractive target for buyout.

CEO Dave Davis stated that more work needs to be done and more tools are available to best position Spirit for the future. He emphasised that the airline is committed to emerging from this restructuring process stronger and more competitive than ever.

Airline brand Spirit files for bankruptcy protection for the second time, assuring passengers it will continue operations