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lite.cnn.com - on gopher - inofficial |
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ARTICLE VIEW: |
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No-frills pioneer Spirit Airlines seeks second bankruptcy in months |
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By Reuters |
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Updated: |
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4:44 PM EDT, Fri August 29, 2025 |
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U.S. no-frills pioneer Spirit Airlines filed for fresh Chapter 11 |
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bankruptcy protection on Friday, as dwindling cash and mounting losses |
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derailed its turnaround efforts since emerging from a previous Chapter |
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11 reorganization in March. |
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The carrier, recognizable by its bright yellow jets, has struggled to |
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steady operations since emerging from its first bankruptcy in March. |
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Flights, ticket sales, reservations and operations will continue, the |
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airline said on Friday. |
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Spirit had been attempting to rebrand as a more premium airline to keep |
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pace with post-pandemic travel trends that have challenged the |
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viability of the ultra-low-cost model. |
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But Spirit’s recovery was further hit by uncertainty from President |
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Donald Trump’s tariffs and budget cuts, which have cooled consumer |
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spending and driven down domestic airfares. |
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The airline was forced to raise doubts earlier this month. |
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“Since emerging from our previous restructuring, which was targeted |
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exclusively on reducing Spirit’s funded debt and raising equity |
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capital, it has become clear that there is much more work to be done |
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and many more tools are available to best position Spirit for the |
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future,” said CEO Dave Davis. |
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The Florida-based airline first sought protection last November after |
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years of losses, failed merger bids and mounting debt, becoming the |
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first major U.S. carrier to do so since 2011. |
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It posted a $1.2 billion net loss last year, with its troubles |
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compounded by the collapse of a $3.8 billion merger with JetBlue |
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Airways and RTX’s Pratt & Whitney engine issues that forced it to |
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ground many of its Airbus jets. |
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Spirit began in 1964 as a long-haul trucking company before shifting to |
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aviation in the 1980s, initially flying leisure packages under the name |
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Charter One Airlines. |
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It rebranded as Spirit in 1992 and built its reputation as a discount |
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carrier for budget-conscious travelers willing to skip extras like |
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checked bags and seat assignments. |
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But the pandemic upended that model, as demand shifted toward more |
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comfortable, experience-driven travel, leaving ultra-low-cost carriers |
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struggling to adapt. |
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