(NewsNation) — Spirit Airlines has filed for bankruptcy, but its CEO remains optimistic about its present and future.
It is the second time in a year that the budget airline has filed for bankruptcy amid financial losses.
Spirit, known for its bright yellow planes and no-frills service, has had a rough ride since the COVID-19 pandemic, struggling to rebound amid rising operation costs and its mounting debt.
By the time of its first Chapter 11 filing in November, Spirit had lost more than $2.5 billion since the start of 2020.
The airline now carries $2.4 billion in long-term debt, most due in 2030, and reported a negative free cash flow of $1 billion at the end of the second quarter.
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Spirit taking a ‘proactive step’: CEO
CEO Dave Davis issued a statement suggesting the move will help Spirit into the future.
“Today, Spirit took a proactive step to build a stronger foundation and future for our company. We have voluntarily entered the Chapter 11 restructuring process to ensure the long-term success of our airline — so we can continue to serve our Guests well into the future,” Davis wrote.
“Chapter 11 is a court-supervised legal process that allows companies to restructure their business while continuing operations. Virtually every major U.S. airline has used these tools to improve their businesses and position them for long-term success.”
Davis added that Spirit “remains committed to delivering a safe, reliable operation” and flights will continue to operate as normal.
The Associated Press has contributed to this report.
