Spirit Airlines Stock Plunges as Bankruptcy Filing Shakes Market Confidence

Spirit Airlines stock crashed on Friday. The airline confirmed it had filed for Chapter 11 bankruptcy. This is the second time in under a year.

The filing happened on August 29, 2025. It was announced by Spirit Aviation Holdings, the parent company. Trading volume surged as investors reacted quickly.

Spirit Airlines Stock Today: What’s Behind the Crash

Spirit stock (FLYY) dropped nearly 47% after hours. Shares closed at $0.66, down sharply from earlier this month. According to Benzinga, this dramatic fall came after news broke of another bankruptcy.

The first Chapter 11 filing was in November 2024. Spirit exited bankruptcy in March 2025 after cutting $800 million in debt. But by mid-2025, over $2 billion in debt still remained.

Costs for aircraft leases also climbed. Passenger demand fell in early 2025. These pressures made operations unsustainable. This second filing is intended to restructure the airline again.

CEO Dave Davis said the move is strategic. He claimed it allows the company to reset financially. He added that many airlines have used Chapter 11 to survive.

How This Impacts Spirit Flyers and Investors

For travelers, the company insists flights are not affected. Existing bookings, credits, and loyalty points remain valid. Operations will continue during restructuring.

For shareholders, the outlook is grim. Spirit expects its NYSE American listing to end soon. The stock will likely shift to over-the-counter trading. Shares may become worthless as part of the court process.

This event follows a failed merger attempt in 2024. The airline now seeks new strategies to stay afloat. The market remains cautious, and investor sentiment is shaken.

Spirit Airlines stock today is under heavy pressure, facing major uncertainty. The restructuring aims to stabilize operations but leaves many questions for investors.

Info at your fingertips-

Q1: Why did Spirit Airlines stock drop today?

Spirit Airlines filed for Chapter 11 bankruptcy again. Investors reacted quickly, causing a 47% drop.

Q2: What is Spirit Airlines stock trading at now?

As of August 30, 2025, Spirit stock (FLYY) trades at around $0.66 after a sharp decline.

Q3: Will Spirit Airlines continue to fly during bankruptcy?

Yes, Spirit says it will continue full flight operations during the restructuring process.

Q4: What happens to Spirit Airlines loyalty points?

All loyalty points, credits, and bookings remain valid according to the airline’s statement.

Q5: Will Spirit stock be delisted?

Yes, Spirit expects to be removed from the NYSE American. Shares may move to OTC markets and become worthless.