Major Airlines Company Files For Bankruptcy For The Second Time This Year

It looks like Spirit Airlines’ best days are behind them.

For the second time in 2025, Spirit Airlines has filed for bankruptcy.

The company initially filed for bankruptcy in March, and after reporting a $245 million loss in its Q2 earnings, it filed for bankruptcy again on Friday afternoon.

Our operation continues as normal, and you can continue to count on us for great value and excellent service. Read our open letter to Guests. pic.twitter.com/Qg7AR920Dl

— Spirit Airlines (@SpiritAirlines) August 29, 2025

CNBC reported more details on what led Spirit to go underwater:

Spirit Airlines on Friday filed for bankruptcy protection for the second time in a year, just months after the country’s largest budget carrier failed find to sturdy financial footing when it came out of Chapter 11 protection in March.

Spirit debtholders agreed in the airline’s previous bankruptcy to exchange $795 million in debt for equity, but the carrier avoided bigger changes to cut costs, like getting rid of planes or more dramatically shrinking its footprint.

Spirit now says it will reduce its network and shrink its fleet, cuts that it said will reduce costs by “hundreds of millions of dollars” a year.

“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 in a news release on Friday.

In its filing, Spirit listed its assets and liabilities of between $1 billion and $10 billion.

The carrier sought to reassure customers that they can continue to book and fly on Spirit after its bankruptcy filing.

“Virtually every major U.S. airline has used these tools to improve their businesses and position them for long-term success,” Spirit posted on its Instagram account on Friday, written in white against a black background, uncharacteristic for the carrier that is often featuring its bright-yellow planes and tropical beaches.

Spirit doesn’t have the best reputation.

Just take a look at some of these videos:

🚨 BREAKING: Spirit Airlines has officially filed for Chapter 11 bankruptcy

Apparently nobody wants to fly on an airline who markets themselves to zoo animals

Gee, what a surprise 🤣 pic.twitter.com/uOLDvdxLO2

— Nick Sortor (@nicksortor) August 29, 2025

Gee, I have no idea why Spirit Airlines went bankrupt! 🤔 pic.twitter.com/FQh7tMQC7b

— Vince Langman (@LangmanVince) August 29, 2025

Happened to me… 1st and last time I ever book a spur of the moment flight. I ended renting a car and driving from Louisiana to Dallas in the middle of the night to make meeting in the morning.

— William Churchill 🇺🇸⬜️ (@Churchill198400) August 28, 2025

It gets worse:

🚨#WATCH: As Chaos and Shocked Travelers Witness a wild Moment as Raccoon Falls from Ceiling at LaGuardia Airport⁰
📌#Queens | #NewYork

Watch as Chaos erupted at the Spirit Airlines counter in LaGuardia Airport’s Terminal A in Queens, New York, after a raccoon crashed through… pic.twitter.com/btv1BqVdkY

— R A W S A L E R T S (@rawsalerts) November 10, 2024

A WILD brawl broke out at a #SpiritAirlines check-in counter in Baltimore… and it was all caught on video! 😱 pic.twitter.com/vrrOlfEWdF

— TMZ (@TMZ) May 31, 2024

BREAKING: Wild brawl breaks out at Philly airport between Spirit Airlines and passengers pic.twitter.com/fzgVg8MUmq

— Jack Poso 🇺🇸 (@JackPosobiec) February 6, 2023

It’s not so surprising their company is tanking!