Years of losses and two failed mergers have caused the ultra-low-cost carrier’s stock price to tumble 92% in the past year. But Spirit says it will bounce back.

South Florida-based Spirit Airlines filed a pre-planned Chapter 11 bankruptcy petition in New York and will continue operations as it seeks to reduce its debt load and return to profitability

Spirit Airlines has filed for Chapter 11 bankruptcy protection following significant financial struggles due to mounting losses and debt maturities, the airline announced Monday. The filing comes after two failed mergers in less than two years – one recently with Frontier and another earlier in 2024 with JetBlue – which left the ultra-low-cost carrier in a bind after repetitive quarterly losses.

The bankruptcy filing on Monday comes as Spirit Airlines had recorded increasingly steep losses post-pandemic.

Spirit Airlines files for bankruptcy after years of losses and a blocked JetBlue merger. The carrier secures $300M in financing, aiming to exit bankruptcy by next year.

Spirit Airlines To Operate Through Chapter 11 Restructuring is published in Aviation Daily, an Aviation Week Intelligence Network (AWIN) Market Briefing and is included with your AWIN membership. Already a member of AWIN or subscribe to Aviation Daily through your company? Login with your existing email and password

Budget carrier Spirit Airlines announced early Monday that it has filed for Chapter 11 bankruptcy, saying it expects to spend the next year going through the process.

Spirit Airlines filed for bankruptcy as its ultralow discount model proved insufficient to satisfy its hefty debt obligations after its merger with JetBlue Airways was blocked. Spirit filed a chapter 11 petition in the U.