Summary
Spirit Airlines has filed for bankruptcy protection again, just months after exiting a previous Chapter 11 reorganization. The airline plans to continue flights and operations while restructuring, even though it faces financial difficulties. Spirit struggles with high debt and competition from larger airlines offering low-cost choices.
Key Facts
- Spirit Airlines filed for bankruptcy for the second time within a year.
- It plans to continue offering flights and maintaining regular operations during the restructuring.
- Spirit previously emerged from a Chapter 11 reorganization in March but still faces financial challenges.
- The airline carries $2.4 billion in long-term debt and reported a $1 billion negative cash flow recently.
- Spirit's financial troubles began during the COVID-19 pandemic and continue with rising operation costs.
- The company is considering selling aircraft and real estate to raise funds.
- Bigger airlines increasing low-cost options have pressured Spirit's market position.
- Spirit has furlough plans affecting 270 pilots and downgrades for 140 captains.
