Spirit Airlines Files for Chapter 11 Bankruptcy

Spirit Airlines has filed for Chapter 11 bankruptcy protection to restructure its operations and address over $9 billion in debt while continuing normal flight operations. The airline stated that passengers can still book flights and that all existing tickets, credits, and loyalty points will be honored during the process. Spirit's financial troubles have been exacerbated by a failed merger with JetBlue and a significant loss of over $2.5 billion since the pandemic began. CEO Ted Christie emphasized that the restructuring aims to strengthen the airline's balance sheet and improve its service offerings. The company expects to emerge from bankruptcy in the first quarter of 2025, supported by a $350 million equity investment from bondholders. Despite the challenges, Spirit reported a slight increase in passenger numbers, though fares have notably decreased.