Spirit Airlines files Chapter 11 as losses and weak demand persist

Spirit Airlines filed for Chapter 11 bankruptcy protection again on Friday, the Florida-based ultra low cost carrier said, as dwindling cash, mounting losses and weak domestic leisure demand undercut a turnaround that began after its prior reorganization earlier this year. The airline said flights, ticket sales and reservations will continue and that employees and contractors will remain paid while it pursues a new restructuring.

In a Securities and Exchange Commission filing earlier this month, Spirit warned there was substantial doubt about its ability to continue as a going concern for the next 12 months, citing adverse market conditions and elevated domestic capacity that have kept fares depressed. Company officials said the refiled Chapter 11 process will be used to address those challenges, including efforts to reduce costs and raise new capital.

Since emerging from its previous Chapter 11 in March, Spirit has concluded it still needs deeper changes to stabilize the business, President and Chief Executive Officer Dave Davis said. The prior reorganization reduced some funded debt and secured new financing, but Davis said it became clear "there is much more work to be done...