Spirit Airlines has filed for Chapter 11 bankruptcy protection in the United States for the second time in less than a year, underscoring the carrier’s ongoing financial struggles in an increasingly competitive market.
The latest filing, submitted on 29 August 2025 in the US Bankruptcy Court for the Southern District of New York, comes just months after Spirit emerged from its first restructuring in March.
The ultra-low-cost airline has faced mounting losses, reporting a net loss of between $246m and $257m from March to June – a sharp reversal from earlier projections of a $252m profit for the year.
Spirit has not turned a profit since 2019 and has accumulated more than $2.5bn in losses since 2020.
Operating expenses reached $1.2bn in its most recent quarter, exceeding revenues by 118%. Analysts say the airline has been squeezed by weakening US domestic travel demand and its high-cost structure.
The company’s first bankruptcy in November 2024 aimed to reduce debt by converting $795m into equity and raising $350m in fresh investment.
But the restructuring failed to resolve deeper operational problems, including an oversized fleet and high fixed costs.
Spirit is now in talks with lessors and creditors to secure new financing and is considering asset sales, including aircraft and real estate, in a bid to stabilise its finances.
