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DANIA BEACH, Fla — Spirit Airlines filed for Chapter 11 bankruptcy for the second time this year, looking to cut costs, streamline routes and keep flights running while it restructures.
On Aug. 29, Spirit Aviation Holdings, LLC. and parent company of Spirit Airlines announced that they have voluntarily applied for Chapter 11 bankruptcy with the U.S. Bankruptcy Court for the Southern District of New York in hopes of keeping the airline in business.
According to Spirit, it seeks to use Chapter 11 to make broad changes and "position it to deliver the best value in the sky for years to come."
The plan is to work with stakeholders over the coming months to find a path forward and the filing gives them the flexibility they need.
"Since emerging from our previous restructuring, which was targeted exclusively on reducing Spirit's funded debt and raising equity capital, 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 Chief Executive Officer. "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. We have evaluated every corner of our business and are proceeding with a comprehensive approach in which we will be far more strategic about our fleet, markets and opportunities in order to best serve our Guests, Team Members and other stakeholders."
In an open letter to its guests, Spirit said that there will be no disruption to its operations and told customers that they can still purchase flights, use purchased tickets, credits and loyalty points.
"As we move forward, Guests can continue to rely on Spirit to provide high-value travel options and connect them with the people and places that matter most," Davis continued. "On behalf of our Board and leadership, I want to thank our Team Members for their continued dedication, resilience and commitment to delivering a safe, reliable operation and excellent service to our Guests."
Spirit said it will redesign its network, optimize its fleet size, address its cost structure and adjust to customer preferences.
Stockholders have been notified that Spirit expects to be delisted from the NYSE because of the filing, but will continue to be traded in the over-the-counter (OTC) marketplace.
This is now the second time Spirit has entered bankruptcy in 2025 since a federal judge blocked the merger with JetBlue Airways on antitrust grounds in 2023.
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