Search Travel Market Report

mainlogo
www.travelmarketreport.com
U.S.A.
English
Canada
English
Canada Quebec
Français
  • News
  • Packaged Travel
  • Cruise
  • Hotels & Resorts
  • Destinations
  • Retail Strategies
  • Air
  • Training & Resources

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.

  
  
Related Articles
Even After Spirit’s Demise, Advisors Continue Their Love-Hate Relationship With the Airline
C’est la fin pour Spirit Airlines, après l’échec du plan de sauvetage du gouvernement américain; tous les vols sont annulés
Spirit Airlines to Liquidate After U.S. Gov’t Bailout Collapses, All Flights Cancelled
Spirit Airlines to Liquidate After Federal Bailout Collapses, All Flights Cancelled
Report: Trump Administration Nears $500 Million Rescue Deal for Spirit Airlines
Spirit Airlines Names Dave Davis as New CEO and President
Spirit Airlines Quietly Brings Back Change Fees for Some Flyers
Frontier Again Bids to Merge with Spirit Airlines
Spirit Airlines Officially Files for Chapter 11 Bankruptcy, Says Operations Will Continue

MOST VIEWED

  1. Hyatt Reveals Details of Two All-Inclusive Resorts Opening in 2026
  2. TTC Tour Brands Launches Tour Fest Advisor Incentive for 2026 Bookings
  3. ACTA “Deeply Concerned & Disappointed” by Air Canada Commission Cuts
  4. 100% Foreign Ownership: Cuba Hails “Bold New Era for Tourism” with Massive Market Reforms
  5. Interests Over Influencers: Study Says Social Trends Play Minor Role in Travel Decisions
  6. Rose Cosentino Named Head of Product Development at Air Canada Vacations


Top Stories
Scandinavian Airlines CEO Anko Van der Werff Will Take the Helm at Air Canada
Scandinavian Airlines CEO Anko Van der Werff Will Take the Helm at Air Canada

Air Canada has appointed Anko Van der Werff as President and CEO, effective January 2027, succeeding retiring Michael Rousseau following an international executive aviation career.

Air Canada Makes Cuts or Postponements to Eight More U.S. Routes
Air Canada Makes Cuts or Postponements to Eight More U.S. Routes

Air Canada is cutting and delaying several U.S. routes this winter as weak cross-border demand and elevated fuel costs continue to weigh on transborder travel.

Canadian Domestic Airfares Remain Stubbornly High as Demand Stays Strong
Canadian Domestic Airfares Remain Stubbornly High as Demand Stays Strong

Strong demand for domestic travel is keeping Canadian airfares elevated while international fares have stabilized and travel to the U.S. remains stagnant.

Aeroplan Partners with Airport-Focused Club Avolta Loyalty Program
Aeroplan Partners with Airport-Focused Club Avolta Loyalty Program

Aeroplan and Club Avolta have partnered to let members earn Aeroplan points on eligible purchases at airport retail and dining locations across North America, expanding travel rewards beyond flights.

Global Passenger Demand Down 2.2% in May, But IATA Praises Resilience
Global Passenger Demand Down 2.2% in May, But IATA Praises Resilience

IATA says global air passenger demand fell 2.2% in May due to Middle East conflict, though demand elsewhere remained resilient despite high fuel costs.

CBSA Makes International Transit Easier at YYZ, YVR & YUL
CBSA Makes International Transit Easier at YYZ, YVR & YUL

The CBSA has streamlined international transit at Toronto, Vancouver and Montreal airports, allowing eligible passengers to bypass customs check-ins for faster onward connections.

TMR Subscription

Don’t miss out! Sign up for our free daily newsletter and get the latest Canadian travel industry news and event coverage delivered straight to your inbox. No spam — just what matters.

Subscribe to TMR

TMR OUTLOOKS, WHITE PAPERS & DESTINATION GUIDES
View All
industry insider
industry-insider.jpg
https://img.youtube.com/vi/tLfhEqdUroo/0.jpg
The Real Value of Trip Insurance (And How to Talk About It With Clients)
industry spotlight
https://img.youtube.com/vi/Z1EaMEv7otU/0.jpg
What Advisors Should Know About Scenic Ikon
Advertiser's Voice
Jamaica’s Tourism Minister on Tourism Investment, Canada’s Growing Importance and Cuba’s Recovery
About Travel Market Report Mission Meet the Team Advisory Board Advertise Syndication Guidelines
TMR Resources Calendar of Events Outlook/Whitepapers Previous Sponsored Articles Previous This Week Articles
Subscribe to TMR
Select Language
Do You Have an Idea Email
Editor@travelmarketreport.ca
Give Us a Call
647 255 8990
Drop Us a Note
Travel Market Report Canada Inc.
3080 Yonge St. Suite 6060 Toronto, ON M4N 3N1
© 2005 - 2026 Travel Market Report, an American Marketing Group Inc. Company All Rights Reserved | Terms and Conditions
Cookie Policy Privacy Policy Manage cookie preferences