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.
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.
Yeah, but a lot of that comes from the legacy airlines in the US becoming low cost carriers.
I won’t be surprised when it happens to the EU when more flag carriers go bankrupt.