Spirit Airlines, known for its ultra-low-cost ticket model, filed for Chapter 11 bankruptcy protection on Monday following a series of challenges, including mounting debt and operational setbacks. The filing marks a critical juncture for the airline, which last turned an annual profit in 2019.
The decision comes after a federal judge blocked Spirit’s planned merger with JetBlue Airways in January, a move that had been seen as a lifeline for the struggling carrier. Since then, Spirit has grappled with fierce competition in a recovering travel market, as well as operational hurdles such as engine issues that have grounded parts of its fleet.
The bankruptcy filing was made in a New York court, where Spirit outlined its plans to restructure its debts with support from bondholders. The agreement includes raising additional funds to sustain operations during the bankruptcy process. The airline anticipates emerging from bankruptcy by the first quarter of next year.
In an open letter to customers, Spirit reassured travelers that all tickets, credits, and loyalty points remain valid and usable. The company emphasized its commitment to maintaining flight schedules and continuing service as usual.
Spirit’s business model, which offers low fares while charging for add-ons like seat selection and baggage, has divided opinion among passengers. While some appreciate the affordability, others have criticized the airline’s lack of amenities.
Industry analysts point to Spirit’s bankruptcy as a reflection of the tough environment for budget carriers, even as the travel industry shows signs of recovery. The outcome of Spirit’s restructuring efforts will likely influence the future of low-cost air travel in the United States.
