Spirit Airlines Files For Chapter 11 Bankruptcy Protection For The Second Time In A Year

Spirit Airlines connected Friday revenge for bankruptcy protection, conscionable months aft nan fund bearer grounded to unafraid amended financial footing erstwhile it came retired of Chapter 11 protection successful March.

The Dania Beach, Florida-based hose said nether this bankruptcy, it will trim its web and shrink its fleet, cuts that it said will trim costs by “hundreds of millions of dollars” a year.

In a release, Spirit said guests tin proceed to book, recreation and usage tickets, credits and loyalty points. Wages and benefits will proceed to beryllium paid and honored, including contractors, it said. Spirit intends to salary vendors and suppliers for equipment and services provided connected aliases aft nan filing day successful nan mean course.

“Since emerging from our erstwhile restructuring, which was targeted exclusively connected reducing Spirit’s funded indebtedness and raising equity capital, it has go clear that location is overmuch much activity to beryllium done and galore much devices are disposable to champion position Spirit for nan future,” Spirit CEO Dave Davis said successful a news merchandise connected Friday.

Spirit had conscionable gotten retired of bankruptcy successful March aft 4 months, only to beryllium dragged down by continued precocious costs and weaker U.S. home demand. The bearer had struggled for years arsenic it dealt pinch a glut of U.S. flights, a Pratt & Whitney motor callback and a grounded takeover by JetBlue Airways, a woody that was blocked successful court.

Firms that utilized Spirit’s aircrafts had reached retired to rival airlines successful caller weeks to gauge executives’ liking successful immoderate of nan carrier’s planes, according to group acquainted pinch nan matter.

Spirit is nan United States’ largest fund airline, followed intimately by rival Frontier Airlines which has tried and grounded to merge pinch Spirit many times since 2022. Frontier connected Tuesday announced 20 caller routes that compete pinch Spirit to triumph complete its struggling competitor’s customers.