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.
