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When Chapter 11 Runs Out of Runway: Lessons from Spirit Airlines

Spirit Airlines’ shutdown was not merely another distressed-company filing, it was a real-time illustration of the limits of Chapter 11 in industries where value depends on uninterrupted operations, customer confidence, and constant liquidity.

7 minute read May 31, 2026 at 11:07 PM
By
Jaclynn N. McDonnell
When Chapter 11 Runs Out of Runway: Lessons from Spirit Airlines

Spirit Airlines ceased operations, marking one of the most abrupt collapses of a major U.S. airline in recent years. Airline bankruptcies are not unusual. Abrupt operational collapses of a major U.S. carrier, however, are far less common.

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