Spirit Airlines Declares Bankruptcy a Second Time in 2025

Spirit Airlines has filed for Chapter 11 bankruptcy protection for the second time in 2025, citing ongoing financial strain that persisted despite a restructuring in March.

During its earlier Chapter 11 exit, Spirit converted roughly $800 million of debt into equity, but could not secure revised aircraft lease terms. As a result, it remains burdened with more than $2 billion in debt, coupled with heavy lease expenses.

Earlier in August, Spirit announced concerns about its financial stability, sharing doubts about its ability to continue operations. In the SEC filing, the airline reported a net loss of approximately $246 million, signaling an unsustainable cost structure.

"Since emerging from our previous restructuring, which was targeted exclusively on reducing Spirit's funded debt and raising equity capital, it has become clear that there is much more work to be done and many more tools are available to best position Spirit for the future," said Dave Davis, Spirit's President and CEO.

Under this new Chapter 11 process, the airline plans to downsize its fleet and withdraw from select markets to reduce debt and lease obligations, aiming to achieve hundreds of millions in annual savings. Spirit also plans to expand premium offerings such as “Spirit First” and “Premium Economy” to capture higher-paying customers.

Photo by David Syphers on Unsplash