Alerts Sign-up
Spirit Airlines has filed for Chapter 11 bankruptcy restructuring for the second time in less than a year. The budget airline, based in Dania Beach, Florida, announced on Friday that it will continue operating flights and that customers can still use all tickets, credits, and loyalty points. Other passenger benefits such as Savers Club memberships and credit card perks will also remain available.
"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," said Dave Davis, president and CEO of Spirit. "After thoroughly evaluating our options and considering recent events and the market pressures facing our industry, our Board of Directors decided that a court-supervised process is the best path forward to make the changes needed to ensure our long-term success."
Spirit reported a loss of $186 million between mid-March—when it exited its previous bankruptcy—and the end of June. This period typically sees high demand due to spring break travel. Earlier this month, Spirit warned investors about doubts regarding its ability to continue operating over the next year.
