U.S. no-frills pioneer Spirit Airlines filed for bankruptcy protection on Friday for the second time in a year after a previous reorganization failed to put it on firmer financial footing.
The Florida-based carrier, which emerged from its first bankruptcy in March, has been grappling with dwindling cash and mounting losses.
In the three months to end-June it reported a net loss of about $246 million. Faced with a cash crunch, the company said last week it borrowed the entire $275 million available under its revolving credit facility.
Spirit's Chapter 11 filing was widely expected after it issued a warning earlier this month that it might not continue to operate if its financial results failed to improve rapidly.
"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," said CEO Dave Davis.
