Spirit Airlines Prepares for Bankruptcy Filing

Spirit Airlines is reportedly preparing to file for Chapter 11 bankruptcy within weeks after merger negotiations with Frontier Airlines collapsed. The airline has been struggling financially, failing to report a profit in five of the last six quarters, and is in talks with bondholders for a restructuring plan. With over $3.3 billion in debt and significant maturities approaching, Spirit's financial situation is precarious, leading to recent furloughs of 330 pilots and the sale of 23 aircraft for $519 million. The impending bankruptcy raises concerns about travel disruptions as the holiday season approaches, especially after a recent incident where a Spirit plane was struck by gunfire while landing in Haiti. Despite these challenges, the airline plans to continue operations, albeit on a reduced scale. Spirit's struggles reflect broader difficulties faced by budget carriers in the post-pandemic travel landscape.