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Spirit Aviation Holdings, Inc., the parent company of Spirit Airlines, has filed voluntary petitions for Chapter 11 bankruptcy this week after months of unprofitability, with plans for a major restructuring.
This is the second time the airline has announced Chapter 11 bankruptcy, which it emerged from just this past March with a new budget and reorganization plan. It was the first U.S.-based airline to declare bankruptcy since 2011.
Earlier this summer, it announced plans to lay off 270 of its pilots and to demote 140 others to save money, stoking worries about whether the airline will go out of business entirely.
On the heels of Spirit Airlines being back in Chapter 11, Spirit published an open letter to customers, which reads: “Today, Spirit took a proactive step to build a stronger foundation and future for our company. We have voluntarily entered the Chapter 11 restructuring process to ensure the long-term success of our airline. Chapter 11 is a court-supervised legal process that allows companies to restructure their businesses while continuing operations. Virtually every major U.S. airline has used these tools to improve their businesses and position them for long-term success.”
It also noted that normal day-to-day operations will continue throughout the bankruptcy process, including flights, earning and redeeming rewards travel and more. Wages and benefits will also be honored, including for contractors.
Throughout the restructuring, Spirit’s goals include a redesign of its network, with a reduced route map to unprofitable markets; optimizing its fleet size to save money; structure its cost model in a more efficient way; and expand its premium options while also providing affordable flights.
“As we move forward, Guests can continue to rely on Spirit to provide high-value travel options and connect them with the people and places that matter most,” said Dave Davis, President and CEO of Spirit Airlines. “On behalf of our Board and leadership, I want to thank our Team Members for their continued dedication, resilience and commitment to delivering a safe, reliable operation and excellent service to our Guests.”
Spirit will be delisted from the NYSE American Stock Exchange within the next few weeks to months. Common stock will continue to be traded.
This article originally appeared in TravelPulse, and was updated on September 3, 2025 as follows:
Following its filing for Chapter 11 bankruptcy, Spirit Airlines announced that it received approval from the U.S. Bankruptcy Court for the Southern District of New York for its restructuring plan, which includes continuing normal operations throughout the bankruptcy period.
“We are pleased to have reached this first milestone in our restructuring process, which will support normal operations as we take decisive action to ensure that Spirit continues delivering the best value in the sky for years to come,” said Dave Davis, President and Chief Executive Officer. “With these approvals in place and access to the many new tools now available to us, we can continue to implement our transformation to build a stronger foundation and future for Spirit.”