After filing for bankruptcy less than a year ago, Spirit Airlines is going through the same process again after a failed reorganization of the struggling discount airline, the company said Friday.
The airline’s President and CEO, Dave Davis, wrote in an open letter to customers that the Chapter 11 restructuring process would “ensure the long-term success of our company so we can continue to serve our Guests well into the future.”
Spirit added that “virtually every major airline has used these tools to improve their businesses and position them for long-term success.”
The airline first filed for bankruptcy in November after two failed mergers over the previous two years with Frontier and JetBlue.
FLIGHT PASSENGER’S RANT ABOUT AIRLINE STANDBY PRACTICES GOES VIRAL AS RECORD SUMMER TRAVEL GETS UNDERWAY
Spirit, an ultra-low-cost airline, has struggled to compete with other major airlines that offer various levels of service and fly to more destinations.
The airline assured customers it would continue to operate normally throughout the bankruptcy process, and passengers could use tickets, credits and loyalty points on flights.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SPR | SPIRIT AEROSYSTEMS | 41.59 | -0.21 | -0.50% |
“Our Team Members remain focused on offering you a safe journey, with excellent service and an elevated experience,” Davis said.
SPIRIT AIRLINES WARNS IT MAY NOT SURVIVE ANOTHER YEAR
The no-frills airline has been attempting to rebrand itself as more premium as customer preferences have shifted away from low-cost, but it has struggled with budget cuts and less demand created by uncertainty in the economy.
“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,” Davis said earlier this month.
SPIRIT AIRLINES PLANS TO SELL PLANES, CUT JOBS
The carrier said in a Securities and Exchange Commission filing it continues to be affected by “adverse market conditions,” including continued weak demand for domestic leisure travel in the second quarter of 2025. The persisting challenges created a “challenging pricing environment,” the airline said.
The airline may get rid of some planes and cut the number of destinations it flies to, The Wall Street Journal reported.
“This afternoon, Spirit Airlines announced a comprehensive restructuring of the airline to position the business for long-term success,” Spirit told FOX Business. “To facilitate this process, the company has filed voluntary petitions for Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York.”
Reuters contributed to this report.
Read the full article here