AIRLINE passengers could soon see fresh turbulence as one of America’s budget carriers heads for another courtroom battle.
The company is preparing to file for bankruptcy again, less than a year after its last high-profile collapse.
Florida-based Spirit Airlines has been unable to stabilize its finances despite exiting bankruptcy just months ago.
The discount airline first sought Chapter 11 protection in November 2023, after failed merger talks left it strapped for cash.
By March, Spirit had emerged from court oversight, swapping nearly $800 million of corporate debt for equity in a bid to regain footing.
But the carrier was still weighed down by more than $2 billion in obligations when the restructuring wrapped.
On top of that, high aircraft lease payments continued to drain its limited resources.
According to the Wall Street Journal, those costs, combined with slowing demand for air travel earlier this year, pushed the airline deeper into losses.
The Wall Street Journal revealed last week that Spirit had hired fresh advisers to study new restructuring moves.
Spirit has also been in high-level talks with rival Frontier Airlines about its ongoing rebuilding efforts, Bloomberg reported Thursday.
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