Spirit Airlines has filed for Chapter 11 bankruptcy protection again months after emerging from a prior reorganization. The airline will continue operating normally so passengers can book trips and use tickets, credits and loyalty points, while employees and contractors will continue to be paid. Spirit carries $2.4 billion in long-term debt, most due in 2030, and reported negative free cash flow of $1 billion at the end of the second quarter. The carrier lost more than $2.5 billion since 2020 and faces competitive pressure from larger airlines offering low-cost options. The airline is testing tiered pricing to attract higher-end customers, and flight attendants were advised by their union to prepare for possible scenarios.
Employees and contractors will also continue to get paid, the company said. CEO Dave Davis said the airline's previous Chapter 11 petition focused on reducing debt and raising capital, and since exiting that process in March, "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."
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.
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