No, you’re not experiencing déjà vu – Spirit Airlines has filed for bankruptcy again, its second time in less than 12 months. After emerging from bankruptcy in March of this year, Spirit failed to make any traction with its cost-cutting initiatives and filed for bankruptcy protection again in August.
Two bankruptcies in less than a year are naturally the result of a combination of headwinds as Spirit faces significant hurdles on its path to restoration. Not only are wealthier airline companies eating into ultra-low-cost carrier (ULCC) fares, but Spirit's internal picture is riddled with debt issues, its inability to handle rising labor costs, and the aftermath of two failed mergers with JetBlue and Frontier.
