Spirit Airlines files for Chapter 11 bankruptcy, plans furloughs, route cuts, and cost reductions amid ongoing financial struggles.

Spirit Airlines, the largest U.S. budget carrier, has filed for Chapter 11 bankruptcy for the second time in 2025, citing ongoing financial struggles despite a prior restructuring. The airline plans to furlough 1,800 flight attendants by year-end, cut pilot costs by $100 million annually, and reduce November flight capacity by 25%. It will suspend service in 11 cities, including Albuquerque, Boise, Portland, and several California locations, starting October 2, and cancel a planned route to Macon, Georgia. The airline, which has lost over $2.5 billion since 2020, continues to face weak demand and operational challenges, with its stock dropping over 40% to $2.10 by August 12. Despite the bankruptcy, Spirit says flights will continue, noting the process is common among major U.S. airlines to restructure and improve long-term viability.