Spirit Airlines filed for bankruptcy protection for the second time in a year on Friday, after struggling to stand out in the crowded market for leisure travel within the United States.
The airline had filed for bankruptcy in November and exited by March. But the company warned investors in a financial filing this month that it continued to face existential threats because of competition and weak demand.
In a statement on Friday, Spirit’s chief executive, Dave Davis, said that the earlier bankruptcy was focused on reducing the company’s debt and raising capital, but that there was an opportunity to do more in a second Chapter 11 bankruptcy filing.
“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,” Mr. Davis, who became chief executive in April, said in the statement. He added: “We have evaluated every corner of our business and are proceeding with a comprehensive approach in which we will be far more strategic.”
Spirit said it would use the bankruptcy process to make further substantial changes to the business. Those include cutting costs; reducing flights in some regions to focus on those in other, more important markets; cutting its fleet of planes to better match demand; and doubling down on its recent attempt to capture rising demand for premium travel.
The carrier, which has not reported an annual profit since 2019, lost more than $2 billion over the past five years. In 2022, Spirit tried to merge with Frontier Airlines, another budget competitor, but that deal was upended by JetBlue Airways, which made a more enticing offer. The JetBlue merger was later blocked by a federal judge.
Spirit has struggled to find its footing amid intense domestic competition. It has also suffered other setbacks, including the temporary removal of some of its Airbus planes from service for unanticipated engine inspections.
In an open letter to customers on Friday, Spirit described the bankruptcy, filed in New York, as a “proactive step to build a stronger foundation and future for our company.” The airline sought to assure customers that flights would continue operating as normal and that travelers could continue to use tickets, credits and loyalty points without interruption.
Bankruptcies are common in the airline industry, with dozens of U.S. carriers filing for bankruptcy in recent decades. The nation’s three largest airlines, American Airlines, Delta Air Lines and United Airlines, have each emerged from bankruptcy in the last 20 years.
Those airlines have enjoyed much stronger performance in recent years, though, because they have been able to profit from high demand for premium and international travel. The larger airlines have also effectively stolen business from Spirit and other budget carriers by introducing their own, bare-bones “basic economy” tickets.
Niraj Chokshi is a Times reporter who writes about aviation, rail and other transportation industries.
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