• Spirit Airlines has filed for Chapter 11 bankruptcy protection for the second time in less than a year.
• The airline reported a net loss of approximately $246 million in the last quarter.
• Operations, including ticket sales and flight schedules, will continue during the bankruptcy process.
• The company cited significant market pressures and cash flow issues as reasons for the new filing.
• Spirit is exploring cost-cutting measures, including potential asset sales and fleet reductions.

Spirit Airlines announced its voluntary Chapter 11 bankruptcy filing on Friday, marking the second time within a year the budget airline has sought bankruptcy protection. This filing comes just months after the company emerged from an earlier restructuring process in March, which failed to provide a stable financial foundation for the airline, according to Business Insider and ABC News.

Since its previous bankruptcy filing, Spirit has continued to grapple with substantial financial challenges, reporting a net loss of about $246 million for the quarter ending June 30. The company's operating expenses for the same period were approximately $1.2 billion, exceeding its revenue by 118%. CEO Dave Davis noted that since the last restructuring, "it has become clear that there is much more work to be done," indicating the airline's ongoing operational and financial struggles, as reported by CBS News and Reuters.

Despite the bankruptcy filing, Spirit assures its customers that normal operations will continue, including the use of tickets, credits, and loyalty points. The airline has also committed to paying its employees and contractors throughout the restructuring process. An internal message from Davis emphasized the importance of Spirit within the U.S. aviation landscape, stating, "We have saved consumers hundreds of millions of dollars," as cited by Newsweek and NPR.

Additionally, the airline has indicated plans to reorganize its network, optimize its fleet, and implement further cost-saving measures as part of its Chapter 11 process. Analysts point out that Spirit's financial instability largely stems from its inability to streamline its operations and manage its cost structure effectively during its first bankruptcy, as noted by multiple industry sources, including India Times and CBS News.

Furthermore, Spirit Airlines is currently entangled in disputes with aircraft lessors and is considering selling off certain assets, including aircraft and real estate, to stabilize its finances. The airline's substantial long-term debt of $2.4 billion, primarily due by 2030, presents an ongoing challenge to its operations as it strives to navigate the competitive landscape dominated by larger airlines, according to Reuters and Newsweek.