Spirit is exploring strategic alternatives after its recent restructuring failed to put the budget carrier on a sustainable path.

Spirit Airlines has engaged advisers to explore strategic options after its financial restructuring fell short of securing a sustainable future, the Wall Street Journal reported on Friday, citing sources.

Spirit Airlines (SAVE, Financials) is once again in crisis mode and this time, the runway to recovery looks even shorter. Warning! GuruFo

Spirit Airlines CEO Dave Davis addresses employees after an SEC filing showed substantial doubt in the budget carrier's future operations.

Just months after emerging from Chapter 11 bankruptcy, Spirit Airlines is warning about its future ability to stay in business

Last year, Spirit Airlines filed for bankruptcy protection, but quickly made it clear that it did not intend to make sweeping changes that would be felt by its customers, employees or creditors. Just a few months later, it seems like that decision was ill-advised.

On its first day in bankruptcy court last November, Spirit Airlines had a simple message for its employees, customers and creditors: Nothing would change for “99.9%” of them, as company lawyer Marshall Huebner put it.

The DOJ blocked Spirit's merger with JetBlue in 2022 over concerns about market consolidation, but markets also consolidate when failing firms go bankrupt and exit.

After cutting its debt during restructuring, Spirit has tried to attract bookings by marketing more upscale products and looking for new ways to cut costs.

Kirby joined the airline in December 2018, replacing longtime Spirit veteran Mark Kopczak. During his tenure, Kirby oversaw a period of rapid network expansion and helped to solidify the ULCC’s dominant position in Fort Lauderdale, Florida. He previously held senior planning roles at Alaska Airlines, Southwest Airlines and AirTran Airways.

Time could be running out for Spirit Airlines to continue operating, which would be bad news not only for its employees and customers but for all people seeking low-priced flights. For decades, the discount carrier has helped push prices down for domestic flights.