American Airlines Joins Spirit Bankruptcy Proceedings Amid Financial Doubts

American Airlines has officially entered the ongoing Chapter 11 bankruptcy proceedings of budget carrier Spirit Airlines. This development follows Spirit's second filing for bankruptcy protection in August 2025, a move that has raised significant concerns among financial analysts regarding its long-term viability. Spirit Airlines is actively working to restructure its substantial financial obligations and operational framework.

The involvement of American Airlines in the case suggests a potential interest in the outcome or a need to protect its own interests, possibly related to outstanding debts, codeshare agreements, or other operational ties with Spirit. Spirit's repeated financial distress underscores the challenging market conditions faced by some ultra-low-cost carriers and the broader economic pressures impacting the aviation sector. The airline's efforts to stabilize its finances are being closely watched as the industry navigates a complex recovery landscape.