Spirit Airlines files for bankruptcy again, and flight attendants union warns to 'prepare for all possible scenarios'

"The ultra low-cost airline said it plans to keep flying as usual during the restructuring process, meaning passengers can still book trips and use their tickets, credits and loyalty points. Employees and contractors will also continue to get paid, the company said. CEO Dave Davis said the airline's previous Chapter 11 petition focused on reducing debt and raising capital, and since exiting that process in March,"

"Spirit, known for its bright yellow planes and no-frills service, has had a rough ride since the COVID-19 pandemic, struggling to rebound amid rising operation costs and its mounting debt. By the time of its first Chapter 11 filing in November, Spirit had lost more than $2.5 billion since the start of 2020. The airline now carries $2.4 billion in long-term debt, most due in 2030, and reported a negative free cash flow of $1 billion at the end of the second quarter."

Spirit Airlines initiated a restructuring while continuing scheduled flights and allowing passengers to use tickets, credits and loyalty points. Employees and contractors will continue to be paid during the process. Leadership said a prior Chapter 11 aimed to cut debt and raise capital, but additional steps and tools are now required. Flight attendants were warned by union leaders to prepare for all possible scenarios. The carrier has lost over $2.5 billion since 2020, carries $2.4 billion in long-term debt with much due in 2030, and reported a negative $1 billion free cash flow in Q2. Competition and strategic pricing changes add further pressures, and the parent flagged substantial doubt about near-term viability.

Read at Fortune