Just six months after clawing its way out of bankruptcy, Spirit Airlines filed for Chapter 11 once again on Friday, seeking to reinvent its operations after a prior restructuring erased nearly $800 million in debt.

The Florida-based budget carrier said the new filing, lodged in New York federal court, is aimed at tackling persistent operational challenges—including network efficiency, fleet optimization, and cost management—that its earlier restructuring left unresolved.

CEO: “Court-Supervised Process Is the Best Path”

Spirit’s President and CEO, Dave Davis, said the company’s board made the decision after weeks of assessing market conditions and the airline’s own vulnerabilities.

“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,” Davis said. He added the new approach will allow Spirit to be more strategic about fleet, markets, and opportunities, ensuring it can still serve customers and employees while retooling its foundation.

Second Bankruptcy in Less Than a Year

The filing follows Spirit’s first bankruptcy case in November 2024, where the airline blamed a slump in business travel, cutthroat competition in the low-cost sector, and inflation. That plan, confirmed in March, involved a debt-for-equity swap that shed $795 million in liabilities and transferred control to creditors.

But the relief proved temporary. The new petition estimates liabilities between $1 billion and $10 billion, underscoring the carrier’s mounting challenges.

Customers and Staff Promised Stability

Despite the turbulence, Spirit reassured passengers and employees that flights, wages, and benefits remain secure. The company has launched a website outlining restructuring plans, stressing that travelers can continue to book, use loyalty points, and redeem credits without disruption.

“Guests can continue to book, travel and use all tickets, credits and loyalty points,” Spirit said, adding vendors and suppliers will be paid in the ordinary course for services rendered after the filing date.

Legal Teams and Court Oversight

The case is assigned to U.S. Bankruptcy Judge Sean H. Lane, who also presided over Spirit’s prior Chapter 11 process.

Spirit has assembled a powerhouse of advisers:

• Davis Polk & Wardwell LLP and Debevoise & Plimpton LLP as legal counsel

• FTI Consulting as restructuring advisor

• PJT Partners as investment banker

• Seabury Aviation advising on flight network restructuring