South Florida-based Spirit Airlines seeks second bankruptcy in months
CNN U S no-frills pioneer Spirit Airlines filed for fresh Chapter bankruptcy protection on Friday as dwindling cash and mounting losses derailed its turnaround efforts since emerging from a previous Chapter reorganization in March The carrier recognizable by its bright yellow jets has struggled to steady operations since emerging from its first bankruptcy in March Flights ticket sales reservations and operations will continue the airline noted on Friday Spirit had been attempting to rebrand as a more premium airline to keep pace with post-pandemic excursion trends that have challenged the viability of the ultra-low-cost model But Spirit s recovery was further hit by uncertainty from President Donald Trump s tariffs and budget cuts which have cooled consumer spending and driven down domestic airfares The airline was forced to raise going-concern doubts earlier this month 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 multiple more tools are available to best position Spirit for the future mentioned CEO Dave Davis The Florida-based airline first sought bankruptcy protection last November after years of losses failed merger bids and mounting debt becoming the first major U S carrier to do so since It posted a billion net loss last year with its troubles compounded by the collapse of a billion merger with JetBlue Airways and RTX s Pratt Whitney engine issues that forced it to ground multiple of its Airbus jets Spirit began in as a long-haul trucking company before shifting to aviation in the s initially flying leisure packages under the name Charter One Airlines It rebranded as Spirit in and built its reputation as a discount carrier for budget-conscious travelers willing to skip extras like checked bags and seat assignments But the pandemic upended that model as demand shifted toward more reassured experience-driven journey leaving ultra-low-cost carriers struggling to adapt
