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US Spirit Airlines files for bankruptcy again / Photo: © GETTY IMAGES NORTH AMERICA/AFP/File
NYSE - LSE
US Spirit Airlines files for bankruptcy again
Budget US carrier Spirit Airlines said Friday that it will file for bankruptcy for the second time in a year, but will continue to fly, sell tickets and operate.
Spirit first filed for bankruptcy in November and announced in March that it had completed a restructuring deal with creditors to trim its debt by nearly $800 million.
With the new filing, the Florida-based company said it "expects to double down on its efforts to" redesign its network, "rightsize its fleet," and pursue further cost efficiencies.
"The Chapter 11 process will provide Spirit the tools, time and flexibility to continue ongoing discussions with all of its lessors, financial creditors and other parties to implement a financial and operational transformation of the Company," Spirit said in a statement.
In April, former CEO Ted Christie was replaced by Dave Davis, who joined Spirit from Sun Country Airlines.
"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, Spirit's president and CEO.
Discount airline Spirit boosted its capacity and market share in the post-Covid aviation market, but has faced increased competition from other carriers.
In 2022, competitor Frontier Airlines attempted a $2.9 billion merger with Spirit. Another rival, JetBlue, then made a potentially more lucrative offer, but the deal fell through after authorities cited antitrust concerns.
D. O'Sullivan--BTZ
