Spirit Airlines has filed for bankruptcy for the second time in a year amid the company’s ‘fragile financial position.’
“Since emerging from our previous restructuring, which was targeted exclusively on reducing Spirit’s funded debt and raising equity capital, 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,” Spirit CEO Dave Davis said. “After thoroughly evaluating our options and considering recent events and the market pressures facing our industry, our Board of Directors decided that a court-supervised process is the best path forward to make the changes needed to ensure our long-term success.”
He went on to say that they “have evaluated every corner” of the company.
“We will be far more strategic about our fleet, markets and opportunities in order to best serve our Guests, Team Members and other stakeholders,” he added. “Guests can continue to rely on Spirit to provide high-value travel options and connect them with the people and places that matter most.”
Earlier this month, Davis claimed “Spirit is in a fragile financial position, likely more so than at any point in the previous 24 months.”
He revealed that the company was “moving away from the elements of the business that no longer work,” including “strategically growing our network in stronger markets with more opportunities and making some difficult decisions like re-evaluating unprofitable routes.”
Despite the changes, the company will continue to operate as normal, and passengers can continue to book and travel with Spirit Airlines. The company reportedly plans to scale back operations in certain markets, while ramping up in its key destinations.
