Overview

• Spirit filed voluntary Chapter 11 on Aug. 29 in the U.S. Bankruptcy Court for the Southern District of New York, its second filing in less than a year.
• The airline says it will maintain normal operations, honoring tickets, credits and loyalty points, and continuing pay for employees and contractors.
• Management outlines a comprehensive restructuring to redesign the route network, right‑size the fleet and cut costs, with targets described as saving hundreds of millions of dollars annually.
• The move follows sustained financial strain, including a roughly $246 million net loss last quarter, a full $275 million draw on its revolver, and an earlier warning of substantial doubt about continuing as a going concern.
• Shares plunged about 50% in after‑hours trading, and reporting indicates aircraft lessors have sounded out rival carriers about Spirit planes, as previously announced pilot furloughs and downgrades begin this fall.