“Spirit Airlines files for Chapter 11 bankruptcy protection again”, I mentioned to a friend earlier today, Friday, August 29, 2025.
“…since last week?” she asked. “What changed?!?”
Spirit Airlines Files For Chapter 11 Bankruptcy Protection. Again.
If this sounds as familiar to you as it did to my friend, it should, as the airline filed voluntary petitions for reorganization and protection under Chapter 11 in the same courthouse back on Monday, November 18, 2024.
On Tuesday, August 12, 2025, Spirit Airlines had warned of “going-concern doubts” only months after the struggling airline emerged from its financial restructuring under Chapter 11 bankruptcy protection five months and 17 days ago on Wednesday, March 12, 2025 — which means that Spirit Airlines operating through 2026 may be doubtful. The stock of Spirit Aviation Holdings, Incorporated finished that day after having plummeted 40.68 percent — or $1.44 per share — to $2.10 per share on the news.
Sure enough — for the second time within slightly greater than only ten months — Spirit Airlines, Incorporated filed voluntary petitions for reorganization and protection under Chapter 11 in the United States Bankruptcy Court for the Southern District of New York earlier today, Friday, August 29, 2025 in order to execute a comprehensive restructuring of the airline to position the business for success in the long term.
“Since emerging from our previous restructuring, which was targeted exclusively on reducing Spirit’s funded debt and raising equity capital, it has become clear that there is much more work to be done and many more tools are available to best position Spirit for the future,” Dave Davis — who is the current president and chief executive officer of the airline — said, according to this official press release. “After thoroughly evaluating our options and considering recent events and the market pressures facing our industry, our Board of Directors decided that a court-supervised process is the best path forward to make the changes needed to ensure our long-term success. We have evaluated every corner of our business and are proceeding with a comprehensive approach in which we will be far more strategic about our fleet, markets and opportunities in order to best serve our Guests, Team Members and other stakeholders.”
The company expects to double down on its efforts through the restructuring process, as Spirit Airlines will:
- Redesign its network: Focus its flying on key markets to provide more destinations, frequencies, and enhanced connectivity in its focus cities — as well as also reduce its presence in certain markets.
- Optimize its fleet size: Rightsize its fleet to match capacity with profitable demand in line with the redesigned network. This will significantly lower the debt of Spirit Airlines and lease obligations and is projected to generate hundreds of millions of dollars in annual operating savings.
- Address its cost structure: Reinforce efforts to build on its industry-leading cost model by pursuing further efficiencies across the business.
- Effectively compete and meet evolving consumer preferences with its three travel options — Spirit First, Premium Economy and Value: Take full advantage of its lower costs to offer consumers more of what they want — value at every price point. The airline will expand the opportunities for travelers to choose premium options while remaining true to its original mission of travel becoming more accessible for everyone.
“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”, according to an official Internet web site that is exclusive to information pertaining to the reorganization of the airline. “The Company has been actively engaged with its largest lessors, secured noteholders and key stakeholders over the past few months as it works to define its operational and financial path forward. 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.”
Timeline of the Long Road to Bankruptcy Protection and Reorganization of Spirit Airlines
The road to the latest bankruptcy protection and reorganization was long: first, Frontier Airlines announced on Monday, February 7, 2022 the intention to merge with Spirit Airlines, which would have resulted in the creation of the fifth largest airline in the United States once the merger had completed…
…but then — in a surprise move which no one saw coming — JetBlue Airways confirmed that a proposal to acquire Spirit Airlines for $33.00 per share in cash was been submitted to the board of directors of the airline on Tuesday, April 5, 2022, which caused Frontier Airlines to abandon its plans to merge with Spirit Airlines on Wednesday, July 27, 2022.
JetBlue Airways Corporation then revealed more details and information pertaining to its definitive merger agreement of Spirit Airlines, Incorporated for $33.50 per share in cash on Monday, August 1, 2022 — which was approved by stockholders of Spirit Airlines on Wednesday, October 19, 2022 and brought the combined entities one step closer to creating the fifth largest airline in the United States once the merger was completed…
…but along with with the attorneys general of the Commonwealth of Massachusetts, the state of New York, and the District of Columbia, the Department of Justice of the United States sued to block acquisition of Spirit Airlines by JetBlue Airways on Tuesday, March 7, 2023, citing that the result would harm travelers in the United States due to further concentration and consolidation of the commercial aviation industry, which would result in higher fares and fewer choices across the country for tens of millions of travelers.
As a result — instead of becoming the fifth largest airline in the United States — the announcement of the official termination of the merger agreement between JetBlue Airways and Spirit Airlines was released on Monday, March 4, 2024.
Final Boarding Call
What all of this means to you as a customer of Spirit Airlines and as a member of the Free Spirit membership program: essentially nothing, as the airline will operate its business as usual — for now, anyway.
If you own shares of Spirit Airlines, that is another matter, as you do have cause for concern: know that the stock — whose ticker symbol is FLYY, as SAVE was used as the ticker symbol of the airline prior to the last Chapter 11 bankruptcy protection — has essentially become worthless after tumbling from its high price of $13.00 per share on Tuesday, April 29, 2025 to as low as $1.22 per share today, Friday, August 29, 2025, with shares losing another 45.9 percent after hours to as low as 66 cents per share once the news was officially released…
…and according to the aforementioned press release: “Spirit expects to be delisted from the NYSE American Stock Exchange in the near term as a result of the Chapter 11 filing, and the Company expects that its common stock will continue to trade in the over-the-counter marketplace through the Chapter 11 process. The shares are expected to be cancelled and have no value as part of Spirit’s restructuring.”
This means that if Spirit Airlines emerges from what it calls a “streamlined chapter 11 process” — the company gave no expectation this time around as to when this will happen — new shares of stock will likely be issued from which current shareholders will not benefit.
Does anyone want to take a guess as to what the next stock ticker symbol of Spirit Airlines will be once — or if — it emerges from Chapter 11 bankruptcy protection?
All photographs ©2018, ©2023, and 2024 by Brian Cohen.
