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Spirit Airlines Files for Bankruptcy for Second Time in 10 Months

by Daniel McCarthy  September 02, 2025
Spirit Airlines plane flying on a cloudy day

Photo: MKPhoto12 / Shutterstock.com

For the second time in less than a year, Spirit Airlines has filed for Chapter 11 bankruptcy protection in a bid to save the ultra-low-cost airline.

Spirit announced on Friday that it was again filing for Chapter 11 protection, this time in the Southern District of New York, after its last filing in November 2024 had not reduced its debt enough. Dave Davis, the president and CEO of Spirit, said the second Chapter 11 was “the best path forward” for the airline and that “there is much more work to be done.”

Spirit said normal operations are expected to continue—the airline will continue to pay employees, including contractors and vendors. It also said it will double down on its efforts to restructure the airline.

That restructuring includes redesigning its network to better enhance its focus cities and continuing to work on new premium options, a plan it revealed in March, that bundle many of the ancillaries that Spirit is known for stripping from the base fare. The plan also allows guests to choose bigger seat options.

Spirit also said it will “rightsize its fleet,” likely by selling some of its Airbus jets, which currently number just under 200.

Spirit was the first airline to file for Chapter 11 in more than a decade when it did so last year. Since the pandemic, it has been the subject of two failed acquisition attempts: first by JetBlue, which bid $3.8 billion for the airline before a federal judge blocked the deal, and then by Frontier, a bid that was rejected by Spirit.

  
  
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