Spirit Airlines tumbling after submitting second bankruptcy in a year

(Bloomberg) -SPERIT AVIATION HOLDINGS INC. For the second time in less than a year, bankruptcy applied to reverse its cash -shed airline. The carrier submitted chapter 11 in New York, in which the assets and liabilities of between $ 1 billion and $ 10 billion were listed on a bankruptcy request. The filing comes amid active negotiations with some of its largest landlords, secure notaces and important stakeholders, the carrier said in a statement. Shares of Spirit imposed a drop of as much as 55% after normal market hours on Friday, with 46% to $ 0.65 before trading at 4:30 pm in New York. Spirit said in a letter to clients that filing the bankruptcy will not affect the airline’s activities and that it will not affect tickets or its loyalty program. The airline also said it would “double” the efforts in the second bankruptcy to lower operating costs, and redesign the flight network, including reducing its presence in some markets and the optimal is the fleet size. The bankruptcy is the failure of an earlier restructuring that cut about $ 795 million to the balance sheet of spirit and that mortgagees required to inject additional capital into the business. The new funds have been used to support initiatives to attract more straw billions by deducing from its bare-legged tariff model by offering customers more benefits. The filing of the carrier comes a day after Bloomberg reported that Spirit the competitive Frontier Group Holdings Inc. involved in high-level conversations about the continued transfer efforts to map a way forward. Frontier and Bill Franks, the chairman of the border, printed for years for a combination of the two lower cost carriers. Frontier increased by 19% in trading to $ 5.84 from 17:04 in New York. Spirit arose from bankruptcy protection in March, while the US airline industry was in the midst of a sharp decline in the fly by consumers concerned about possible trade wars and rising inflation. The airline warned investors on August 11 that it could not survive if they could not raise cash quickly enough to satisfy creditors, and announced about a week later that it had fully drawn a $ 275 million credit line. At least $ 50 million of these went to the US Bank, who warned that it would cancel a contract to process credit card payments at the end of the year if the airline no longer set aside cash than collateral. Spirit filed its earlier bankruptcy in November to restructure about $ 1.6 billion in debt after losing post-pandemic, as larger airlines attracted travelers by offering more cheap basic economy rates. It was also hit by a car manufacturing defect that based a portion of its aircraft fleet and by historically high labor costs under new contracts. The airline was bruised by a 2022 takeover between JetBlue Airways Corp. and Frontier. Spirit eventually agreed to be purchased by JetBlue in a $ 3.8 billion agreement, but the combination was blocked by a federal judge on antitrust grounds in January 2024. (Updates with more details throughout.) More stories like these are available on Bloomberg.com © 2025 Bloomberg LP