Spirit Airlines filed for its second bankruptcy in a year due to financial struggles. The airline plans to continue operations while restructuring, including reducing its presence in certain markets and cutting its fleet.
Spirit Airlines has filed for bankruptcy for the second time in less than a year. Its first attempt to recover in March failed to fix the carrier’s money problems.
The low-cost airline lost $246 million between April and June. Operating costs reached $1.2 billion, which was higher than its revenue. Spirit also had to borrow its full $275 million credit line to keep running.
CEO Dave Davis said the company needs deeper changes. Spirit now plans to shrink its fleet and exit some markets. These cuts are expected to save hundreds of millions each year.
Despite the bankruptcy, flights will continue. Tickets, reservations, and operations will remain in place. Employees will keep getting paid, and the airline will still meet its obligations to vendors.
Spirit also faces a dispute with lessor AerCap over dozens of new Airbus jets due later this decade. Meanwhile, rivals see a chance to grow. Frontier is already adding routes, and analysts expect Southwest and United to look at Spirit’s planes and assets.
The airline, famous for its yellow jets, has struggled for years with debt, losses, and failed merger attempts.
Credits: Spirit Airline
