Spirit Airlines is preparing to pull out of Portland along with at least 10 other cities as part of its latest bankruptcy restructuring, according to Aviation Week. The carrier, which filed for Chapter 11 protection for the second time in less than a year, will also stop flying to Albuquerque, Birmingham, Chattanooga, Columbia, Oakland, Sacramento, San Jose, San Diego, Salt Lake City, and Boise.
The airline said its operations will otherwise continue during the restructuring, allowing travelers to book tickets and use credits and loyalty points. Employees and contractors will keep getting paid as normal.
CEO Dave Davis explained that the company’s earlier bankruptcy focused on cutting debt and raising capital, but since then “it has become clear that there is much more work to be done.” Union leaders for flight attendants, however, urged members to be ready for “all possible scenarios” as the company works through the process.
Spirit, known for its bright yellow planes and budget fares, has struggled financially since the pandemic. The company has lost billions since 2020, now carries $2.4 billion in long-term debt, and reported a $1 billion negative cash flow at the end of the second quarter. Rising operating costs, weaker demand for leisure travel, and competition from larger airlines offering their own low-cost products have added to the challenges.
After leaving bankruptcy earlier this year, Spirit announced plans to furlough 270 pilots and downgrade about 140 captains to first officers in the fall. The company has also considered selling off some of its aircraft and real estate to raise cash, though previous buyout efforts by JetBlue and Frontier fell apart.
Despite the cuts, Spirit continues to operate more than 5,000 flights across 88 destinations in the U.S., Latin America, and the Caribbean. Still, its parent company has admitted to “substantial doubt” about whether the airline can survive over the next year without significant changes.
