Spirit Airlines Files for Chapter 11 Bankruptcy

Spirit Airlines has filed for Chapter 11 bankruptcy protection, marking the first major U.S. airline to do so in over a decade, as it struggles with $1.6 billion in debt and failed merger attempts with JetBlue and Frontier. The airline plans to restructure under creditor control and has secured a $350 million debtor-in-possession financing to support operations through the bankruptcy process, which it expects to exit by early 2025. Despite the filing, Spirit will continue its flight operations, allowing customers to book flights and use existing tickets, credits, and loyalty points. Experts warn that Spirit's bankruptcy could lead to higher airfares and reduced options for budget travelers due to diminished competition in the market. The airline has faced significant financial challenges, including losses exceeding $2.5 billion since early 2020 and inability to report a profit in five of the last six quarters. The restructuring aims to strengthen the airline's balance sheet and enhance its travel offerings moving forward.