Spirit CEO David Davis retention award $2.92M

Spirit CEO David Davis retention award $2.92M

Spirit Airlines, a budget carrier known for its no-frills service, has filed for Chapter 11 bankruptcy protection for the second time in just a few months. The company announced the filing on Friday, August 29, 2025, stating that it intends to continue operating normally during the restructuring process [1].

Spirit Airlines, recognizable by its bright yellow jets, has struggled to recover from the COVID-19 pandemic, which significantly impacted the airline's business model. The company has been attempting to reposition itself as a more premium airline, but it has faced numerous challenges, including weak demand for domestic leisure travel and uncertainties in its business operations [2].

CEO Dave Davis, in a statement, noted that the airline's previous Chapter 11 petition focused on reducing debt and raising capital. However, it has become clear that there is much more work to be done to best position Spirit for the future [2]. The company cited adverse market conditions and uncertainties in its business operations as reasons for the second bankruptcy filing.

Spirit Airlines had previously sought bankruptcy protection in November 2024 after years of losses, failed merger bids, and mounting debt. The company emerged from bankruptcy in March 2025, having successfully restructured some of its debt obligations and secured new financing. However, the airline has continued to face financial difficulties and has announced plans to sell certain aircraft and real estate to raise cash [1].

The airline's struggles have opened the door for rivals such as Frontier Airlines, which has been adding routes and eyeing further expansion. Spirit's aircraft fleet is relatively young, making it an attractive takeover target, but previous buyout attempts from budget rivals like JetBlue and Frontier were unsuccessful [2].

In a quarterly report issued earlier this month, Spirit Aviation Holdings, the carrier's parent company, stated that it had "substantial doubt" about its ability to continue as a going concern over the next year. The company expects these uncertainties to continue for at least the remainder of 2025 [1].

References:
[1] https://finance.yahoo.com/news/spirit-airlines-files-bankruptcy-protection-210027782.html
[2] https://www.reuters.com/business/us-no-frills-pioneer-spirit-airlines-seeks-second-bankruptcy-months-2025-08-29/