Spirit Airlines filed for bankruptcy protection for the second time in a year due to cash shortages and mounting losses. The company reported a net loss of $246 million in the last quarter and borrowed $275 million from its credit facility. CEO Dave Davis stated more restructuring is needed for a better future.

The airline’s Chapter 11 filing in New York signals potential financing needs. Spirit’s high operating expenses, totaling $1.2 billion, have contributed to its financial struggles. Disputes with aircraft lessors further complicate the situation. The airline plans to reduce its presence in markets and cut its fleet to save costs.

Rivals like Frontier Airlines are eyeing opportunities amid Spirit’s restructuring. Frontier has added routes and is considering expansion. Spirit plans to honor wages, benefits, and obligations to vendors throughout the bankruptcy process. The airline’s struggles stem from failed cost fixes in its first bankruptcy and failed attempts to rebrand as a premium airline.

Spirit’s stock fell 44% in extended trading, leading to expectations of delisting. Efforts to provide premium travel options continue. The airline’s history dates back to 1964 as a long-haul trucking company before becoming an aviation company. It rebranded as Spirit in 1992, serving budget-conscious travelers, but struggles to adapt to changing travel demands during the pandemic.

Read more at Yahoo Finance: Spirit Airlines files for second bankruptcy in a year as financial challenges persist