Spirit Airlines, Inc., the largest U.S. ultra-low-cost carrier (ULCC), filed Chapter 11 bankruptcy in November 2024 (Case No. 24-11988, S.D.N.Y.) following the antitrust-blocked $3.8 billion JetBlue merger, accumulated losses exceeding $2.5 billion since 2020, Pratt & Whitney engine groundings, and competitive pressures from legacy carriers offering basic economy products. The company carried approximately $3.3 billion in debt at filing. Spirit's first bankruptcy was a prepackaged restructuring filed with bondholder support, converting $795 million in senior secured notes to equity and securing $350 million in new equity investment, with confirmation occurring in 94 days (February 20, 2025) and emergence on March 12, 2025. However, only five months later, in August 2025, Spirit filed for Chapter 11 protection again (Case No. 25-11897) following AerCap lease terminations, continuing operational losses, and inability to execute its restructured business plan. The second case involves a $475 million DIP facility, fleet reduction from 214 to approximately 100 aircraft, an examiner appointment, and ongoing negotiations with aircraft lessors. A Carlyle Aviation restructuring term sheet was approved in December 2025. This Chapter 22 scenario reflects structural challenges facing ultra-low-cost carriers.