The Florida-based carrier, which emerged from its first bankruptcy in March, has been grappling with dwindling cash and mounting losses.
Spirit's Chapter 11 filing was widely expected after it issued a warning earlier this month that it might not continue to operate if its financial results failed to improve rapidly.
The company made the Chapter 11 filing in bankruptcy court in the Southern District of New York. Spirit said it was working productively with its secured noteholders, including with respect to potential financing that may become necessary later in the proceedings.
Spirit is also locked in a dispute with aircraft lessor AerCap Holdings over a deal covering 36 Airbus planes due for delivery between 2027 and 2028.
The airline's struggles have created opportunities for rivals, with Frontier Airlines adding routes and eyeing further expansion. Analysts and industry executives say carriers such as Frontier, Southwest and United Airlines might be interested in picking up Spirit aircraft and other assets as it restructures.
Spirit, recognizable by its bright yellow jets, first sought bankruptcy protection last November after years of losses, failed merger bids and mounting debt, becoming the first major U.S. carrier to do so since 2011.
However, a slump in travel spending in the U.S. market following President Donald Trump's trade wars and budget cuts upset its calculations.
The airline said it will double down on its efforts to provide premium travel options to customers. Flights, ticket sales, reservations and operations will continue, it said on Friday.
It rebranded as Spirit in 1992 and built its reputation as a discount carrier for budget-conscious travelers willing to skip extras like checked bags and seat assignments.
In its previous restructuring, the airline had reduced its debt by about $795 million by converting it into equity. It had also received $350 million in equity investment from existing investors -
REUTERS
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