Spirit Airlines files for bankruptcy amid growing losses and debt
SUMMARY
Spirit Airlines announced its Chapter 11 bankruptcy filing on Monday, citing significant financial struggles including persistent losses, mounting debt, and a failed $3.8 billion merger with JetBlue. Despite the filing, operations and ticket sales will continue as normal, with plans to emerge from bankruptcy by early 2025. The Dania Beach, Florida-based airline secured $300 million in financing and $350 million in equity investments to maintain operations and reduce $795 million in debt. CEO Ted Christie reassured customers of the airline’s long-term viability, emphasizing continued service and flight availability. Spirit, last profitable in 2019, deferred $1.1 billion in debt payments to 2025 and recently cut jobs and sold 23 aircraft to save $80 million. Its stock dropped sharply from $3.22 to $1.07 following news of the financial struggles. This filing comes as Spirit prepares for the busy Thanksgiving travel season, heightening pressure on the low-cost carrier.
