— Spirit Airlines said it filed for Chapter 11 bankruptcy protection again, months after emerging from a reorganization in March; the carrier said it will continue normal operations while it restructures and works to shore up liquidity.
Key Takeaways
- Spirit filed for Chapter 11 on Aug. 29, 2025, marking its second bankruptcy in under a year.
- The company says bookings, tickets, credits and loyalty points remain valid and operations will continue.
- Spirit cited weak demand for domestic leisure travel and accounting concerns about going concern status.
- Earlier in the year the parent, Spirit Aviation Holdings, warned of “substantial doubt” about its ability to continue over the next year.
- Cost actions include planned furloughs of about 270 pilots and downgrades for roughly 140 captains, effective Oct. 1 and Nov. 1.
- Spirit reported it has lost more than $2.5 billion since the start of 2020 and may sell aircraft or property to raise cash.
- The carrier operates about 5,013 flights to 88 destinations, according to travel data cited by the company.
Verified Facts
The airline, known for low-cost, no-frills service, said in filings that the restructuring this week follows its March emergence from Chapter 11 protection, when it restructured some debt and secured fresh financing. Management now says further steps are required to stabilize the business.
In a quarterly filing earlier in August, Spirit Aviation Holdings stated there is “substantial doubt” about the company’s ability to continue as a going concern for the coming year, an accounting phrase signaling possible shortfalls in cash and liquidity.
Spirit pointed to persistent softness in domestic leisure travel during its second fiscal quarter in 2025 and to continuing uncertainties in operations that it expects to last at least through the remainder of 2025.
As part of continued cost reductions, Spirit plans to furlough about 270 pilots and to reassign about 140 captains to first officer positions; the company has scheduled those moves for Oct. 1 and Nov. 1 to match projected 2026 flight volumes.
Management has also said it may sell selected aircraft and real estate assets and is experimenting with tiered fares and upgraded options aimed at capturing higher-spend travelers. Previous takeover approaches by JetBlue and Frontier were unsuccessful before and during the earlier bankruptcy process.
Context & Impact
Budget carriers have faced pressure as larger airlines expand tiered fare options that appeal to cost-conscious flyers; higher operating costs and legacy debt have compounded challenges for Spirit after steep pandemic losses.
The second bankruptcy filing may affect investor confidence, supplier terms and potential future bids by rivals; however, Spirit says day-to-day service will continue and employees and contractors will remain on payroll during restructuring.
Travelers with upcoming Spirit trips should monitor communications from the airline and check bookings, credits and loyalty balances but need not assume immediate cancellations solely because of the filing.
“There is much more work to be done and many more tools are available to best position Spirit for the future,” said CEO Dave Davis regarding the decision to refile.
Spirit Airlines CEO Dave Davis
Unconfirmed
- Exact timing or scope of any aircraft or real estate sales has not been announced.
- Any new takeover bids or specific suitors after this filing remain speculative unless publicly disclosed.
Bottom Line
Spirit’s new Chapter 11 filing highlights ongoing weakness in domestic leisure demand and lingering financial strain despite earlier restructuring steps. The airline says it will keep flying while it seeks additional liquidity and operational changes; the outcome will hinge on restructuring progress, market demand and possible asset sales.