Spirit Airlines files for Chapter 11 bankruptcy protection

Spirit Airlines has filed for Chapter 11 bankruptcy protection due to losses, debt, and a failed merger during the pandemic travel slowdown. The company has secured a deal with bondholders for $300 million in financing to stay operational until the first quarter of 2025. Ticket sales and operations will continue as normal. The CEO expressed confidence in the company’s long-term plan and urged customers to keep booking flights. The company had already deferred $1.1 billion in debt payments and was last profitable in 2019. The bankruptcy deal includes $350 million in equity investment from bondholders, totaling $795 million in debt relief. The company’s share price dropped significantly following reports of the bankruptcy filing. Spirit had faced challenges in recent years, including an engine recall in 2023 and a failed merger with JetBlue. The company announced plans to cut jobs and sell older planes to save money. Analysts had predicted a restructure and bankruptcy for Spirit after the failed merger.

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