Spirit just filed for bankruptcy …. again

• Spirit Airlines on Friday filed for bankruptcy for the second time in a year.
• Its last Chapter 11 bankruptcy proceedings ended in March after slashing debt by nearly $800 million.
• The discount airline warned in early August that it may not survive the year.

Spirit Airlines filed for bankruptcy, again.

The discount airline on Friday filed for Chapter 11 protection after it failed to find itself on a more stable financial footing following its last bankruptcy proceedings, which began in November 2024.

"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," Dave Davis, president and chief executive of the company, said in a statement provided to Business Insider and published in the company's press release about the filing.

Davis added: "After thoroughly evaluating our options and considering recent events and the market pressures facing our industry, our Board of Directors decided that a court-supervised process is the best path forward to make the changes needed to ensure our long-term success."

The airline continues to operate, and guests can continue to book, travel, and use tickets, airline credits, and loyalty points, a spokesperson for Spirit told Business Insider.

In an open letter to guests published by Spirit after news of the bankruptcy filing was made public, the airline described the move as "a proactive step to build a stronger foundation and future for our company."

Throughout the coming Chapter 11 proceedings, Spirit will aim to "focus its flying on key markets," adjust the size of its fleet of planes, and make changes to its cost structure — including "pursuing further efficiencies across the business," according to a website created by the company to inform customers and shareholders about its restructuring process.

Spirit warned in early August that it may not last the year, despite finalizing its last bankruptcy proceedings in March, Business Insider previously reported.

It exited its previous Chapter 11 proceedings in a softer market, with less demand for domestic flights. Business Insider previously reported that economic headwinds largely contributed to the slowdown in demand for air travel. At the same time, cruise lines have seen a boost.

Stock for Spirit Aviation Holdings, the parent company of Spirit Airlines, had fallen more than 45% in after-hours trading at the time of publication.

This is a developing story. Please check back for updates.