Spirit Airlines Seeks Second Chapter 11 Bankruptcy Protection

DANIA BEACH, Fla., August 29, 2025 - Spirit Airlines, the U.S. ultra-low-cost carrier known for its bright yellow jets, filed for Chapter 11 bankruptcy protection for the second time in less than a year on Friday, citing dwindling cash reserves and mounting losses since exiting its prior restructuring in March.

In an open letter to customers, Spirit’s parent company, Spirit Aviation Holdings, emphasized that all flights, ticket sales, reservations and loyalty programs will continue uninterrupted. Travelers can still use tickets, credits and Free Spirit loyalty points, and Saver$ Club and credit card benefits remain valid.

“Chapter 11 is a court-supervised legal process that allows companies to restructure their businesses while continuing operations,” the company stated, assuring guests that team members remain focused on providing safe journeys and elevated service.

Key Points of the Filing:

  • Second Restructuring: Spirit first emerged from Chapter 11 in March after swapping debt for equity, but liquidity pressures persisted, prompting a new filing.
  • Business as Usual: The airline will maintain normal operations during the court-supervised restructuring, including honoring vendor and supplier payments for services rendered after the filing date.
  • Long-Term Viability: Management described the move as a “proactive step to build a stronger foundation and future” through network redesign, fleet optimization, cost-structure improvements and expanded service tiers including Spirit First and Premium Economy.

Spirit’s Chairman and CEO, Dave Davis, noted: “Since emerging from our previous restructuring, it has become evident that there is still significant work to accomplish and additional strategies available to optimally position Spirit for the future.”

Travelers and stakeholders can find updates and court filings at www.spiritrestructuring.com or by calling the restructuring information line at (855) 952-6606 (U.S. toll free) or +1 (971) 715-2831 (international).

The carrier, which has struggled to stabilize operations amid rising costs and changing consumer preferences, recorded a net loss of $1.2 billion last year, and its ambitious pivot toward a more premium brand has yet to yield sustainable results.

  • Reuters contribution.