Spirit files for bankruptcy for the second time in a year

Spirit Airlines filed for bankruptcy protection for the second time in a year Friday, after struggling to stand out in the crowded market for leisure travel within the United States.

- NIRAJ CHOKSHI

The airline had filed for bankruptcy in November and exited by March. But the company warned investors in a financial filing this month that it continued to face existential threats because of competition and weak demand.

In a statement Friday, Spirit CEO Dave Davis said that the earlier bankruptcy was focused on reducing the company’s debt and raising capital, but that there was an opportunity to do more ina second Chapter 11 bankruptcy filing.

“It has become clear that there is much more work to be done and many more tools are available to best position Spirit for the future,” Mr Davis, who became CEO in April, said in the statement. He added: “We have evaluated every corner of our business and are proceeding with a comprehensive approach in which we will be far more strategic.”