Los Angeles, Los Angeles on 1 September, 2024, California, a Spirit Airlines Airbus A320 taxi at Los Angeles International Airport after arriving from Boston in California.
Kevin Carter | Getty Image News | Getty images
Spirit Airlines On Friday, for a second time in a year, bankruptcy was filed for conservation, when the budget carrier failed to return to strong financial futting when chapter 11 came out of conservation in March.
Spirit debolders agreed in their past Insolvency To provide $ 795 million in loan for equity, but carrier Avoid big changes To cut costs, such as getting rid of aircraft or shrinking its footprint more dramatically.
Dania Beach of Florida airline said that under this bankruptcy, it will reduce its network and shrink its fleet, cuts that it has been said that the cost of “hundreds of million dollars” in a year would decrease.
Spirit CEO Dave Davis said in a news release on Friday, “Since our previous reorganization, which was targeted to reduce the finance -funded loan of Spirit especially to reduce the funds and increase the equity capital, it is clear that it is clear that a lot of work is to be done for the future for the future and many more equipment are available.”
Spirit expected to be stronger with his previous bankruptcy, which entered on November and emerged from March. But the airline was dragged with a continuous high cost and weak American domestic travel demand.
In admission to a court in December, the soul estimated a net profit of $ 252 million this year. But earlier this monthIt said that it lost about $ 257 million since March 13 after exiting Chapter 11 by the end of June.
Spirit warned a few weeks ago that it might not be able Live for a year Until it increased its cash significantly. It also said that its credit card processor was demanding additional collateral. It then borrowed the entire $ 275 million available under its revolving credit facility and said that the card processor could return to $ 3 million per day from the airline.
Spirit shares are 72% below compared to the previous month.
The carrier struggled for years as it was dealt with a brightness of American flights, a Pratt and Whitney Engine is remembered and by a failed acquisition Jetbu AirwaysA deal that was blocked in court.
According to people familiar with the case, the aircraft deficiencies of Spirit in recent weeks had reached rival airlines to reduce the interest of the authorities in some carrier aircraft, which spoke on the name of the name not printed as the talks were private.
The soul is the largest budget airline in the United States, followed by a rival Marginal airlines Which tried to merge with the soul again and again since 2022 and failed. Frontier announced on Tuesday 20 new routes It competes with the spirit of its struggling contestant to win over customers.
