Fort lauderdale: American airline Spirit Airlines announced on Friday that it will file for bankruptcy protection, following a similar filing in November 2024, but said it will continue operations. The low-cost airline first filed for bankruptcy protection in November 2024, and last March announced that it had completed a restructuring deal with creditors to reduce its debt by approximately $800 million.
According to Yemen News Agency, in its new filing, the Florida-based company said it "expects to redouble its efforts" to redesign its network, "resize its fleet," and strive for greater cost efficiency. The company explained in a statement that "Chapter 11 (of the bankruptcy code) will provide Spirit the tools, time, and flexibility to continue ongoing discussions with its lessors, creditors, and other parties to achieve a financial and operational transformation of the company."
Last April, former CEO Ted Christie was replaced by Dave Davis, who joined Spirit from Sun Country Airlines. "As we move forward, customers can continue to rely on Spirit to provide high-value travel options and connect them to the people and places that matter most to them," Davis said.
The low-cost carrier has been successful in strengthening its market share in the post-COVID era, but it has faced increasing competition from other airlines. In 2022, rival Frontier Airlines attempted a $2.9 billion merger with Spirit. JetBlue, another competitor, then made a more lucrative offer, but the deal fell through after authorities cited antitrust concerns.