Spirit Airlines (FLYY) has filed for Chapter 11 bankruptcy protection for the second time in a year.
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The discount carrier’s latest bankruptcy filing comes months after it failed to improve its finances since emerging from Chapter 11 protection in March of this year. Spirit’s previous bankruptcy began in November 2024. In that restructuring, the company failed to make many of the changes analysts said were necessary, such as selling airplanes and dramatically shrinking its operations.
Last December, Spirit Airlines forecast a net profit of $252 million this year. But earlier this month, the company reported that it had lost nearly $257 million since emerging from bankruptcy in March. Management of the Florida-based airline said under the new bankruptcy filing that it will reduce its network and shrink its fleet, cuts that it said will reduce costs by hundreds of millions of dollars.
Bad to Worse
“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,” said CEO Dave Davis in a news release.
Analysts say Spirit Airlines has also been hurt by high costs and weak U.S. domestic travel demand. The carrier has also struggled after a proposed takeover by JetBlue Airways (JBLU) was blocked by the courts. Spirit is the largest U.S. budget airline, followed by rival Frontier Airlines (ULCC), which has tried and failed to merge with Spirit repeatedly since 2022. FLYY stock has declined 85% this year.
Is FLYY Stock a Buy?
No analysts currently cover Spirit Airlines stock. So instead, we’ll look at its three-month share price performance. As one can see below, FLYY stock has declined 80% in the last 12 weeks.
