Spirit Airlines Bankruptcy

Spirit Airlines has secured court approval to begin dismantling the once-busy budget carrier and sell its parts to pay creditors. The liquidation a bankruptcy court judge authorized on Teusday marks a dramatic turn for Spirit, which filed for bankruptcy protection in August 2025 hoping to escape financial ruin. The airline’s parent company was attempting to restructure the business for the second time since November 2024 when it abruptly stopped operating flights early Saturday and said it was going out of business. Lawyers for the company argued for a rapid wind-down plan centered on selling off every possible Spirit asset, from airplanes and engines to spare parts and airport gates.