<div id="readability-page-1">Beleaguered carrier Spirit Airlines may get a lifeline out of bankruptcy. The low-budget carrier is in talks with Castlelake, a global alternative investment firm with approximately $33 billion in assets under management, about a potential takeover, according to CNBC.The airline has long struggled to compete with rival carriers that offer various levels of service and fly to more destinations. Its financial situation became so perilous that the airline was forced into bankruptcy twice in one year. In August, it said it had entered the Chapter 11 process after failing to complete a reorganization less than a year earlier. JETBLUE, SPIRIT AGREE TO TERMINATE MERGER OVER REGULATORY ISSUES FOX Business reached out to Spirit Airlines and Castlelake for comment. The airline’s CEO, Dave Davis, wrote in an open letter to customers that its second restructuring process would &#34;ensure the long-term success of our company so we can continue to serve our Guests well into the future.&#34;<div><div> <img src="https://imageproxy.pbkrs.com/https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2024/07/931/523/spirit-airlines-changes-1.jpg/query-dGw9MSZ2ZT0x?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="931" height="523" original-src="https://imageproxy.pbkrs.com/https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2024/07/931/523/spirit-airlines-changes-1.jpg/query-dGw9MSZ2ZT0x"/></div> Travelers wheel luggage toward a Spirit Airlines check-in desk at George Bush Intercontinental Airport in Houston. (Jason Fochtman/Houston Chronicle via Getty Images)</div>Spirit added that &#34;virtually every major airline has used these tools to improve their businesses and position them for long-term success.&#34;SPIRIT AIRLINES PLANS TO SELL PLANES, CUT JOBSHowever, Spirit warned in a Securities and Exchange Commission filing in early August if might not survive another year. The airline said in the filing that it continues to be affected by &#34;adverse market conditions,&#34; including continued weak demand for domestic leisure travel in the second quarter of 2025. The persisting challenges created a &#34;challenging pricing environment,&#34; the airline said. <div><div> <img src="https://imageproxy.pbkrs.com/https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2025/08/931/523/spirit-airlines-parked-plane-1-1.jpg/query-dGw9MSZ2ZT0x?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="931" height="523" original-src="https://imageproxy.pbkrs.com/https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2025/08/931/523/spirit-airlines-parked-plane-1-1.jpg/query-dGw9MSZ2ZT0x"/></div> A Spirit Airlines Airbus A320 airplane taxis at San Diego International Airport before departing for Las Vegas on May 9, 2025 in San Diego, California. (Kevin Carter/Getty Images)</div>The carrier also projected that it will continue to &#34;experience challenges and uncertainties&#34; in its operations for the remainder of fiscal 2025. The airline first filed for bankruptcy in November 2024 after two failed mergers over the previous two years with Frontier and JetBlue. The Justice Department argued at the time that blocking JetBlue's acquisition of Spirit violated antitrust law and would've hurt consumers by leaving them with fewer choices among budget air carriers and higher air fares.Citadel co-founder Ken Griffin on Wednesday blamed the Biden administration for the rejected JetBlue merger and its impact on his firm.&#34;We happened to be a creditor of Spirit. Their merger with JetBlue was stopped. Spirit's in bankruptcy today,&#34; Griffin said at the World Economic Forum in Davos, Switzerland.SPIRIT AIRLINES WARNS IT MAY NOT SURVIVE ANOTHER YEAR The no-frills airline has been attempting to rebrand itself as more premium as customer preferences have shifted away from low-cost, but it has struggled with budget cuts and less demand created by uncertainty in the economy.<div><div> <img src="https://imageproxy.pbkrs.com/https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2023/09/931/523/Spirit-American-airlines-Los-Angeles.jpg/query-dGw9MSZ2ZT0x?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="931" height="523" original-src="https://imageproxy.pbkrs.com/https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2023/09/931/523/Spirit-American-airlines-Los-Angeles.jpg/query-dGw9MSZ2ZT0x"/></div> A Spirit Airlines plane taxis near American Airlines aircraft at Los Angeles International Airport on June 1, 2023, in Los Angeles, California. (Mario Tama/Getty Images)</div>GET FOX BUSINESS ON THE GO BY CLICKING HEREDuring both restructures, the airline assured customers it would continue to operate normally throughout the bankruptcy process, and passengers could use tickets, credits and loyalty points on flights.</div>

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Spirit Airlines is in talks with Castlelake for a potential takeover as it seeks a lifeline from bankruptcy. The airline has faced significant challenges, including two bankruptcies in one year and failed mergers with Frontier and JetBlue. Despite efforts to rebrand and improve its financial situation, Spirit warned it may not survive another year due to adverse market conditions and weak demand for domestic leisure travel. The CEO emphasized the need for restructuring to ensure long-term success, while the airline continues to operate normally during the bankruptcy process.

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Budget flights hang in balance as bankrupt Spirit Airlines turns to private equity for lifeline: report