Spirit Airlines files for Chapter 11 bankruptcy protection for the second time in a year

Core Viewpoint - Spirit Airlines has filed for bankruptcy protection again, just months after emerging from a previous Chapter 11 restructuring in March 2024, indicating ongoing financial instability and challenges in securing a sustainable operational model [1][3]. Financial Restructuring - The previous bankruptcy, which began in November, involved debtholders agreeing to exchange debt for equity, but Spirit Airlines did not implement significant cost-cutting measures such as reducing its fleet or scaling down operations [2]. - The CEO of Spirit Airlines, Dave Davis, acknowledged that despite the previous restructuring aimed at reducing funded debt and raising equity capital, further actions are necessary to position the airline for future success [3]. Operational Challenges - Recently, Spirit's aircraft lessors have been reaching out to rival airlines to explore interest in acquiring some of Spirit's planes, highlighting potential operational downsizing and asset liquidation [4].