Overview

• Spirit filed for Chapter 11 protection on Aug. 29 in the Southern District of New York, its second bankruptcy in less than a year, listing assets and liabilities between $1 billion and $10 billion.
• The company plans to shrink its fleet, exit some markets and redesign its network, targeting hundreds of millions of dollars in annual savings.
• Spirit says customers can continue to book and travel and that tickets, credits and loyalty points remain valid, with employee pay and benefits and post‑filing vendor obligations honored.
• The airline entered court with acute liquidity pressure after drawing its full $275 million revolver and disclosing card‑processor collateral demands, and its shares plunged roughly 45%–51% after the announcement.
• Management says it is engaged with major lessors, secured noteholders and other stakeholders as it restructures, citing weak domestic leisure demand, higher costs, Pratt & Whitney engine issues and a failed JetBlue deal as key headwinds.