Spirit Airlines Files for Bankruptcy for Second Time, Announces Reduction of Flight Network and Fleet

Spirit Airlines, a low-cost carrier based in Florida, has filed for Chapter 11 bankruptcy protection for the second time in less than a year. The airline made the filing on Friday in New York, citing assets and liabilities between $1 billion and $10 billion. This news comes after the airline’s efforts to stabilize its business were unsuccessful.

Stocks Drop and Cost-Cutting Measures Announced

Following the bankruptcy announcement, Spirit’s shares dropped 51% in post-market trading on Friday, falling to $0. 60. In an effort to cut annual costs by “hundreds of millions of dollars,” the airline has announced plans to reduce its flight network and shrink its fleet. This will include “doubling down” on cost-cutting efforts, redesigning its route network, and scaling back in select markets. The airline also plans to optimize its fleet size to improve efficiency.

Passengers, Employees, and Loyalty Program Unaffected

In a letter to customers, Spirit assured passengers that the bankruptcy filing will not affect daily operations, ticket validity, or its loyalty program. All tickets, credits, and loyalty points will remain valid, and wages and benefits for employees and contractors will continue uninterrupted. The airline also confirmed that Labor Day weekend flights will operate as scheduled.

Previous Bankruptcy and Future Plans

This is not the first time Spirit Airlines has filed for bankruptcy. In November 2024, the airline went through a previous restructuring to reduce its debt and raise equity capital. However, CEO Dave Davis stated that more work needs to be done to position Spirit for the future. The airline plans to use all available tools to improve its financial situation.

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