For the second time in less than a year, Spirit Airlines has filed for bankruptcy protection.
The airline made the announcement on Friday, confirming its Chapter 11 bankruptcy protection filing in the United States Bankruptcy Court for the Southern District of New York.
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The company, which initially filed for Chapter 11 bankruptcy back in March, said in a press release about its latest move, “Spirit intends to use the Chapter 11 process to implement the broad changes necessary to transition the Company for a sustainable future and position it to deliver the best value in the sky for years to come. The Company has been actively engaged with certain of its largest lessors, secured noteholders and key stakeholders over the past few months as it works to refine its path forward.”
It added, “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. The Company is also working productively with its secured noteholders, including with respect to potential financing that may become necessary later in the proceedings.”
So what does that mean for customers? Per the news release, they can continue to “book, travel and use tickets, credits and loyalty points,” while employees will still receive their pay and benefits during the restructuring.
Interestingly enough, earlier this month, Spirit gave a heads up that it may not survive the next 12 months. The airline’s quarterly earnings report, released on Aug. 11, outlined bleak performance amid “weak demand” for travel.
Why Spirit Airlines Has Always Been Popular
Despite the financial struggles, Spirit has always held its own lane in the airline game. The company built a reputation for cheap fares that made it possible for everyday people to travel without breaking the bank. Spirit’s no-frills approach — charging for bags, food, and seat selection — has been criticized, but it’s also been the reason folks looking for a deal keep flying with them.
For many, Spirit has been the go-to airline for quick weekend trips, family visits, and last-minute flights. People loved the ability to hop on a plane for under $100 when other airlines charged double or triple the price. Add to that their frequent routes to cities like Miami, Atlanta, Las Vegas, and L.A., and Spirit became a household name, especially for travelers who wanted convenience at a fraction of the cost.
Even with the turbulence, Spirit has continued to market itself as an airline “for the people,” and that’s exactly why folks still talk about them every time they’re in the news.