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.
That’s good, when I flew to PHX for work earlier this year I specifically choose another airline even though they didn’t have points just to avoid that. Probably a good move for them