Spirit Airlines will file Chapter 11 bankruptcy reorganization just five months after withdrawing from its last reorganization on Friday.
In a letter to the flyer, Dania Beach, Florida, said it will continue to fly and they can continue to use all “tickets, points and loyalty points.” All other passenger benefits, including Savers Club and credit card allowance, are available.
“It’s clear that there’s more work to do and more tools to provide the best positioning spirit for the future,” Dave Davis, president and CEO of Spirit, said in a statement Friday. “After thoroughly evaluating our options and considering recent events and the market pressures facing our industry, our board of directors decided that court oversight procedures are the best way to ensure the changes we need to succeed in the long term.”
Spirit lost $186 million in the three and a half months starting in mid-March, when it withdrew from its last bankruptcy restructuring until the end of June. Usually, this is the peak time for budget travel, including spring break.
The airline warned investors on August 11 that there is “a great doubt about the company’s ability to continue to worry within 12 months”.
Davis said the Spirit Plan is undergoing a “full” reorganization this time. Its last bankruptcy filing filed in November 2024 focused primarily on the carrier’s debt.
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Spirit said in a statement that the comprehensive restructuring will include a roadmap redesign centered around key cities, reducing airline fleets and reducing costs.
According to the schedule of aviation analysis company Cirium, the airline’s five destinations by flight in the third quarter are:
- Fort Lauderdale – Golywood International Airport (FLL)
- Orlando International Airport (MCO)
- Harry Reed International Airport in Las Vegas (Lasse)
- Detroit Wayne County Metropolitan Airport (DTW)
- Newark Liberty International Airport (EWR)
- Cirium data shows that Spirit has a smaller schedule compared to the same period in 2024 in the three months to September.
Its latest quarterly financial documents show that the airline flew 215 Airbus A320 home planes at the end of June.
Other airlines are not waiting for a mental reorganization, or at worst, fail. Frontier Airlines recently launched 20 new routes, including many spiritual markets. Analysts believe other airlines, including JetBlue Airways, Sun Countrine Airlines and United Airlines, may be interested in the gates and facilities of Spirit at various airports such as FLL and DTW.
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