In a dramatic move reflecting its ongoing financial struggles, Spirit Airlines announced it will cease operations in 12 U.S. cities starting October 2, 2025, as part of a broader network restructuring following its second Chapter 11 bankruptcy filing in less than a year. The ultra-low-cost carrier’s retreat has opened the door for competitors like United Airlines and Frontier Airlines to swoop in, adding flights to capture Spirit’s customer base and signaling a fierce battle for market share in the budget travel sector.
A Strategic Retreat Amid Bankruptcy
Spirit Airlines, known for its bright yellow planes and no-frills fares, confirmed it will end service in Albuquerque, New Mexico; Birmingham, Alabama; Boise, Idaho; Chattanooga, Tennessee; Columbia, South Carolina; Oakland, Sacramento, San Diego, and San Jose, California; Portland, Oregon; Salt Lake City, Utah; and cancel planned flights to Macon, Georgia. The cuts, effective the week of October 2, represent 3.9% of Spirit’s total seat capacity for the month, according to aviation analytics firm Cirium. The airline also plans to furlough 270 pilots starting November 1 and downgrade 140 captains to first officers, alongside reducing its fleet to cut costs by “hundreds of millions of dollars” annually.
The announcement comes less than a week after Spirit Aviation Holdings filed for Chapter 11 bankruptcy protection on August 28, 2025, following a brief exit from bankruptcy in March. The carrier has faced mounting challenges, including weaker-than-expected demand, high operational costs, and Pratt & Whitney engine issues affecting its Airbus A320neo fleet. “Since emerging from our previous restructuring, it has become clear that there is much more work to be done to position Spirit for the future,” said CEO Dave Davis in a statement.
Rivals Capitalize on Spirit’s Struggles
As Spirit scales back, competitors are moving swiftly to fill the void. United Airlines announced on September 4 that it will add flights to 15 cities starting January 6, 2026, targeting key Spirit markets like Fort Lauderdale, Orlando, Las Vegas, Houston, and Chicago. New routes include Newark to Columbia, South Carolina, and Chattanooga, Tennessee—cities Spirit is exiting. United is also boosting frequencies on routes like Los Angeles to Las Vegas and Chicago to Orlando. “If Spirit suddenly goes out of business, it will be incredibly disruptive, so we’re adding these flights to give their customers other options,” said Patrick Quayle, United’s senior vice president of global network planning.
Frontier Airlines, the second-largest U.S. budget carrier, is also capitalizing on Spirit’s woes, announcing 20 new routes last week from cities like Detroit, Houston, Baltimore, and Dallas, with a 39% seat overlap with Spirit’s network. Analysts at TD Cowen note that full-service carriers like United, with an 18% overlap, stand to benefit significantly, leveraging their global networks and basic economy offerings to attract Spirit’s price-sensitive customers.
Background: A Turbulent Journey
Spirit’s financial troubles are not new. The airline has grappled with a glut of U.S. domestic flights, rising labor costs, and a failed merger with JetBlue Airways blocked in court. Its first bankruptcy in late 2024 focused on reducing $795 million in debt but avoided deeper cuts, leaving the carrier vulnerable to a softening travel market. By June 2025, Spirit reported a $246 million net loss, prompting warnings it might not survive without additional cash. The airline has since borrowed $275 million from its revolving credit facility and extended its credit card processing agreement to stabilize operations.
The broader U.S. airline industry has faced challenges, with an oversupply of domestic seats driving down fares and squeezing low-cost carriers. Spirit’s retreat follows earlier cuts, including over 12,000 flights axed in May and June 2025 and 30 routes suspended in September 2024, as it prioritized profitability over market presence.
Impact and Next Steps
Spirit’s exit from these 12 cities could disrupt travel plans for thousands, particularly in smaller markets like Chattanooga and Columbia, where low-cost options are limited. Affected passengers are entitled to refunds or rerouting, with Spirit promising to notify those with impacted reservations. However, the loss of Spirit’s service may lead to higher fares in these markets, as competitors like American Airlines gain pricing power in hub-to-hub routes.
For Spirit, the cuts are a critical step toward financial recovery, with plans to sell 23 Airbus A320 and A321 aircraft and focus on high-performing markets. Yet, industry analysts warn that deeper restructuring may be needed to ensure long-term viability. “Spirit is in a fragile financial position,” said the Association of Flight Attendants-CWA, urging employees to prepare for further challenges.
Rivals like United and Frontier are poised to gain market share, with enhanced schedules and competitive pricing. However, the aggressive expansion could further pressure Spirit, potentially accelerating its contraction. Travelers are advised to monitor bookings closely and explore alternatives, as Spirit’s future remains uncertain.
Conclusion
Spirit Airlines’ decision to cut flights in 12 cities marks a pivotal moment in its fight for survival, as rivals like United and Frontier move to capture its market share. With bankruptcy restructuring underway, the airline faces tough choices to stabilize its finances, while passengers brace for potential disruptions. For budget travelers, the shifting landscape underscores the need to stay informed and adaptable in an increasingly competitive airline industry.