Spirit Airlines files for bankruptcy again, plans fleet and network cuts

Spirit Airlines has filed for Chapter 11 bankruptcy protection for the second time in less than a year, saying it will now cut its fleet and shrink its network to reduce costs by “hundreds of millions” annually. The budget carrier had emerged from its last restructuring in March after slashing debt and raising equity, but continued to face weaker U.S. domestic demand, high costs, and operational pressures.

Spirit posted a $257 million loss from March through June, a sharp reversal from earlier forecasts of a $252 million profit for 2025. CEO Dave Davis said deeper restructuring is needed to stabilise the airline.

The carrier, the largest U.S. budget airline, has long struggled with overcapacity in domestic markets, a Pratt & Whitney engine recall, and the collapse of a blocked takeover bid by JetBlue. Rival Frontier Airlines has already announced 20 new routes to compete for Spirit’s customers.