Spirit Airlines files for Chapter 11 bankruptcy again

Spirit Airlines on Friday filed for bankruptcy protection for the second time in a year, just months after the country’s largest budget carrier failed find to sturdy financial footing when it came out of Chapter 11 protection in March.

Spirit debtholders agreed in the airline’s previous bankruptcy to exchange $795 million in debt for equity, but the carrier avoided bigger changes to cut costs, like getting rid of planes or more dramatically shrinking its footprint.

Spirit now says it will reduce its network and shrink its fleet, cuts that it said will reduce costs by “hundreds of millions of dollars” a year.

“Since emerging from our previous restructuring, which was targeted exclusively on reducing Spirit’s funded debt and raising equity capital, it has become clear that there is much more work to be done and many more tools are available to best position Spirit for the future,” Spirit CEO Dave Davis said in a news release on Friday.

In its filing, Spirit listed its assets and liabilities of between $1 billion and $10 billion.

The carrier sought to reassure customers that they can continue to book and fly on Spirit after its bankruptcy filing.

“Virtually every major U.S. airline has used these tools to improve their businesses and position them for long-term success,” Spirit posted on its Instagram account on Friday, written in white against a black background, uncharacteristic for the carrier that is often featuring its bright-yellow planes and tropical beaches.

Spirit, known for its bright yellow planes, had expected to come out stronger from its previous bankruptcy, which it entered in November and emerged from in March. But the airline was dragged down by continued high costs and weaker U.S. domestic travel demand.

In a court filing in December, Spirit had forecast a net profit of $252 million this year. But earlier this month, it said it instead lost nearly $257 million since March 13, after it exited Chapter 11, through the end of June.

Spirit warned a few weeks ago that it might not be able to survive a year unless it significantly increased its cash. It also said its credit card processor was seeking additional collateral. It then borrowed the entire $275 million available under its revolving credit facility and said that the card processor could hold back up to $3 million a day from the airline.

Spirit’s shares are down 72% over the past month and down 45% in after-hours trading on Friday.

Labor unions warned pilots and flight attendants earlier this month that more changes could be ahead. Hundreds of flight attendants are already on voluntary leave, and Spirit has planned to furlough hundreds of pilots this year to cut costs.

“This bankruptcy will be harder and look different than last year, but we will…