Spirit Airlines has announced it has filed for Chapter 11 bankruptcy.
The filing comes after the company had suffered major economic losses and growing debt.
Ticket sales and other operations will continue as normal as it navigates its bankruptcy filing.
Spirit CEO and president Ted Christie shared, “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.”
Christie added, “The most important thing to know is that you can continue to book and fly now and in the future.”
🚨#BREAKING: Spirit Airlines, known for its cheap flights prices and overpriced baggage fees and other services has officially filed for bankruptcy pic.twitter.com/hSUbKwBsSu
— R A W S A L E R T S (@rawsalerts) November 18, 2024
Spirit airlines just filed bankruptcy! I can’t imagine why!
pic.twitter.com/X9sbrO70mv— Badass (@Keepfighting250) November 18, 2024
Check out what NBC News reported:
Spirit Airlines said Monday it has filed for Chapter 11 bankruptcy protection after struggling with losses, growing debt and a failed merger during the post-pandemic travel lull.
The company said in a stock market statement that it had secured a prearranged deal with bondholders that includes $300 million in financing to keep it afloat, with the business planning to end its bankruptcy in the first quarter of 2025.
Ticket sales and all other operations will continue as normal, the company said in the statement, which comes just 10 days before record numbers of travelers are expected to take to the skies over Thanksgiving.
“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.
“The most important thing to know is that you can continue to book and fly now and in the future,” Christie said in a letter to customers.
The Dania Beach, Florida-based company had already deferred $1.1 billion in debt payments until next year and was last profitable in 2019.
The one amenity I will most miss on Spirit Airlines is the complimentary pre-flight entertainment.
— Cryptid Politics (pro-DeSantis) 🇺🇸🐊 (@CryptidPolitics) November 18, 2024
Check out what The New York Times reported:
Spirit Airlines filed for bankruptcy protection on Monday after struggling with a series of losses, but travelers should not panic.
The low-cost carrier, which has not reported an annual profit since 2019 and has lost more than $2.2 billion since the start of 2020, reassured its customers that flights would be taking off as scheduled and that travelers could continue to book tickets. Many companies, including major airlines, have emerged from Chapter 11 bankruptcy — a process that allows a company to financially restructure while still operating — on stronger footing.
ADVERTISEMENTSpirit filed for bankruptcy protection after it recently failed to renegotiate its debt. It had struggled to capitalize on the recovery from the pandemic, in part because of engine problems and increased competition, and was dealt a blow after a federal judge blocked a planned merger with JetBlue Airways this year.
JetBlue offered to buy Spirit Airlines for $3.8 billion.
In 2023, the DOJ sued to stop the merger.
In January of this year, a judge agreed with the DOJ, citing a "threat to competition."
Spirit has now filed for bankruptcy and is worth $118 million.
Are consumers better… pic.twitter.com/d9rzkYi9Wk
— Good Morning Liberty (@GoodAMLiberty) November 18, 2024
Join the conversation!
Please share your thoughts about this article below. We value your opinions, and would love to see you add to the discussion!