Spirit Airlines filed for fresh bankruptcy protection months after emerging from a Chapter 11 reorganization and plans to continue normal flight operations during restructuring. Passengers can still book trips and use tickets, credits, and loyalty points, and employees and contractors will continue to be paid. CEO Dave Davis said the prior petition focused on reducing debt and raising capital and that additional work and tools are needed to position the airline for the future. Flight attendants were warned by union leaders to prepare for all scenarios. The carrier has faced heavy losses since 2020 and carries substantial long-term debt.
Flight attendants, meanwhile, were warned by union leaders to "prepare for all possible scenarios." "We are being direct because even as we have many ways to fight because of our union, we also want to get you the truth about the situation at our airline, and how each of us can take actions to protect and prepare ourselves for any challenge," the Association of Flight Attendants said Friday in a letter to its members.
Spirit, known for its bright yellow planes and no-frills service, has had a rough ride since the COVID-19 pandemic, struggling to rebound amid rising operation costs and its mounting debt. By the time of its first Chapter 11 filing in November, Spirit had lost more than $2.5 billion since the start of 2020. The airline now carries $2.4 billion in long-term debt, most due in 2030, and reported a negative free cash flow of $1 billion at the end of the second quarter.
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