Spirit Airlines Recently Filed for its Second Bankruptcy in Under a Year

Spirit Airlines filed for its second bankruptcy in less than a year at the end of last month, and its competitors are now suggesting that this may be the beginning of the end. Speaking at an industry conference on Thursday, United CEO Scott Kirby called the ultra-low-cost carrier approach a “fundamentally broken business model” and argued that customers have already voted with their wallets.

When asked what gave him such confidence, Kirby answered that it was “because I’m good at math.” Earlier in the week, he also described Spirit’s model as an “experiment” that ultimately failed. Unfortunately for Spirit, the public seems inclined to agree with Kirby… especially seeing as the carrier only emerged from its last Chapter 11 filing in March.

Spirit didn’t let the jab go unanswered. On X, the airline said, “Scott is finally right about something – it is all about customers. Our Guests love low fares, especially our new Spirit First and Premium Economy options. Maybe that’s why United executives can’t stop yapping about us."

Amid the back and forth, Spirit is making moves to save cash wherever possible. It recently announced it would cut more than a dozen routes, including service to Albuquerque, Birmingham, Boise, Oakland, Portland, Sacramento, Salt Lake City, San Diego, and San Jose. Plans to launch service in Macon, Georgia, were also scrapped.

United, on the other hand, is already eyeing Spirit’s potential collapse as an opportunity. Beginning January 6, 2026, it plans to launch new services to 15 cities, with expansions in high-demand leisure markets such as Fort Lauderdale, Orlando, and Las Vegas.

FMI: www.united.com