Spirit Airlines Bankruptcy: Failed Mergers Impact Future

Spirit Airlines has filed for Chapter 11 bankruptcy due to mounting losses and failed merger attempts with Frontier Airlines and JetBlue Airways. Despite the bankruptcy, Spirit plans to continue operations without disruptions, reassuring passengers that flights will proceed as scheduled. The airline aims to restructure its $1.6 billion debt and expects to emerge from bankruptcy by early 2025 with increased financial flexibility, supported by an additional $300 million from creditors. JetBlue and Frontier Airlines may benefit from Spirit's reduced capacity, given their route overlaps with the budget carrier. Spirit's bankruptcy marks the first major airline bankruptcy in over a decade, following similar paths previously taken by major U.S. airlines like American, Delta, and United. As Spirit navigates this process, the impact on passengers is expected to be minimal, with tickets, credits, and loyalty points remaining valid.