Summary
Spirit Airlines has filed for Chapter 11 bankruptcy, citing mounting losses, debt, and the failure of its proposed $3.8 billion merger with JetBlue.
Operations, including ticket sales, will continue as normal, with the airline securing $300 million in financing and planning to exit bankruptcy by early 2025.
Spirit has also arranged a $350 million equity investment from bondholders.
Struggling since the pandemic, Spirit deferred $1.1 billion in debt, faced an engine recall, and announced cost-cutting measures, including job cuts and selling older planes.
I feel like it’s probably better to have more competition in the space, but Spirit and Frontier are godawful.
The problem is that they are awful, but consumers are very price sensitive when they buy tickets. You get what you pay for.
We usually take a look at Spirit before booking flights, and with all of their add on fees it often ends up being more expensive.