Spirit Airlines is back in bankruptcy with its future in 'substantial doubt.' It's already affecting travelers.

"Spirit first sought bankruptcy protection in November 2024, following years of mounting financial losses and the collapse of a proposed $3.8 billion merger deal with JetBlue. The budget airline, easily recognizable thanks to its bright yellow planes, reported in its initial voluntary bankruptcy petition that as of September that year, it had $9.49 billion in total assets and $8.99 billion in total debts."

"The rebound was short-lived. In a Securities and Exchange Commission quarterly report filed in August, the airline's parent company, Spirit Aviation Holdings, warned it may not be able to stay in business another year. "Management has concluded there is substantial doubt as to the Company's ability to continue as a going concern within 12 months from the date these financial statements are issued," the company wrote. Spirit, the company wrote, was still being hit by rough market conditions, "including elevated domestic capac"

Spirit Airlines filed for Chapter 11 bankruptcy protection for a second time within a year and has been cutting routes and jobs while downsizing operations. The carrier first sought bankruptcy in November 2024 after years of losses and a failed $3.8 billion merger with JetBlue; as of September it reported $9.49 billion in assets and $8.99 billion in debts. Spirit emerged from bankruptcy in March after slashing $800 million in debt and receiving a $350 million equity infusion, but later filings warned the company may not be able to continue as a going concern within 12 months amid rough market conditions.

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