In a significant development, Spirit Airlines has filed for Chapter 11 bankruptcy protection, becoming the first major U.S. airline to take this step in over a decade. The Florida-based budget airline, known for pioneering low-cost, no-frills travel, has faced mounting financial challenges, including sustained losses since 2019, a failed merger with JetBlue, and difficulties in restructuring its debt.
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“I am pleased we have reached an agreement with a supermajority of both our loyalty and convertible bondholders on a comprehensive recapitalization of the Company, which is a strong vote of confidence in Spirit and our long-term plan,” Spirit CEO and President Ted Christie said in a statement.
He said in a letter to customers, “The most important thing to know is that you can continue to book and fly now and in the future.”
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Despite these setbacks, Spirit assured passengers that operations will continue as usual.
Customers can still book flights and use tickets, credits, and loyalty points without interruption. The airline also announced an agreement with bondholders as part of its restructuring plan, aiming to stabilize its operations and reemerge stronger in the market.
This development highlights the turbulent landscape of budget air travel and the broader pressures facing the aviation industry.
The company’s share price fell from $3.22 to $1.15 last week after The Wall Street Journal reported it was preparing to file for bankruptcy protection, closing at $1.07 on Friday.
Stay tuned as Spirit navigates this critical chapter in its history.
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