Spirit Airlines Stock Craters After It Files for Chapter 11—Again

Spirit Airlines filed for Chapter 11 bankruptcy again on Friday. (Patrick T. Fallon / AFP / Getty Images)

Several months after emerging from bankruptcy protection, discount airline Spirit Airlines says it has again filed for Chapter 11.

Shares of the airline’s parent company, Spirit Aviation Holdings , collapsed in after-hours trading following the announcement. Around 4:30 p.m., they were trading at 65 cents in the NYSE American exchange, down 46%. They were relisted there in April after exiting Chapter 11 in March.

The airline warned earlier this month that it might not survive for another year without a cash infusion. It also warned in July that it was putting hundreds of pilots on unpaid leave in November.

In Friday’s announcement, the company said it is executing a “comprehensive restructuring of the airline to position the business for long-term success.” It added that it will use Chapter 11 to make needed changes.

Write to Anita Hamilton at anita.hamilton@barrons.com