Spirit Airlines Files for Chapter 11 Bankruptcy

Spirit Airlines has filed for Chapter 11 bankruptcy in New York amid ongoing financial struggles, largely due to a failed $3.8 billion merger with JetBlue and increased competition from larger airlines. The airline plans to restructure its debt, converting $795 million into equity and securing $350 million in equity infusion, alongside $300 million in debtor-in-possession financing. Despite the bankruptcy filing, Spirit will continue operations and has assured customers that existing reservations and loyalty points will be honored, although some schedule changes could occur. Since 2020, Spirit has reported annual losses and a significant stock decline of 93%. The airline lists its assets and liabilities between $1 billion and $10 billion, making it the first major U.S. airline to file for Chapter 11 since American Airlines did so 13 years ago. Spirit's bankruptcy restructuring process is expected to conclude by the first quarter of 2025.