On Friday, U.S. Unfinancial Pioneer Spirit Airlines filed for fresh Chapter 11 bankruptcy protections as cash and growing losses derail its turnover efforts since the previous Chapter 11 restructuring in March.
Since its first bankruptcy in March, the airline has been working to stabilize operations as it identified with its bright yellow jets. Flights, ticket sales, bookings and operations will continue, the airline said Friday.
Spirit has been trying to rebrand as higher-cost airlines to maintain post-pandemic travel trends that challenge the feasibility of ultra-low-cost models.
But the uncertainty of Donald Trump’s tariffs and budget cuts further hit the mental recovery, which eased consumer spending and dispersed domestic air tickets.
The airline was forced to raise suspicion earlier this month.
“Since our previous restructuring stands out, the restructuring is aimed only at the goal of reducing mental capital debt and increasing equity capital, so it’s clear that there is more work to be done and there are more tools to provide the best placement spirit for the future,” said CEO Dave Davis.
The Florida-based airline first sought bankruptcy protection last November, becoming the first U.S. operator since 2011 after years of losses, merger failures and debts.
Its net loss last year was $1.2 billion, and its troubles caused problems with the $3.8 billion merger with JetBlue Airways and RTX’s Pratt & Whitney Engine, forcing it to take many Airbus jets into root.
Spirit started in 1964 as a long-distance trucking company before moving to aviation in the 1980s, initially flying casual packages under the name of Charter One Airlines.
It renamed it Spirit in 1992 and has a reputation for a discount operator willing to skip additional budget travelers like checked baggage and seating tasks.
However, the pandemic has reversed the model as demand shifts to more comfortable to experience-driven travel, which makes ultra-low-cost carriers strive to adapt.
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