Spirit Airlines has filed for Chapter 11 bankruptcy protection, facing mounting losses and significant debt. The airline, which struggled after the pandemic slashed travel demand, also faced failed merger attempts with Frontier and JetBlue, further deepening its financial woes.
The bankruptcy filing includes a prearranged deal with bondholders, securing $300 million in financing to keep the airline running. Spirit plans to emerge from bankruptcy by the first quarter of 2025, with operations continuing as usual. Flights will run, and all tickets, credits, and loyalty points will be honored.
Spirit’s move into bankruptcy protection is a strategy to reduce debt and regain financial flexibility. While the company has encountered setbacks, the plan is designed to position Spirit for long-term viability in an increasingly competitive industry.
Sources:
Fox Business: www.foxbusiness.com/lifestyle/spirit-airlines-files-bankruptcy-what-passengers-should-know
Fox Business: www.foxbusiness.com/markets/spirit-airlines-files-chapter-11-bankruptcy-protection
Spirit Airlines Press Release: ir.spirit.com/news-releases/news-details/2024/Spirit-Airlines-Announces-Comprehensive-Agreement-to-Deleverage-Balance-Sheet-and-Position-the-Company-for-Long-Term-Successas-a-Leading-Low-Fare-Carrier/default.aspx
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