Spirit Airlines declares bankruptcy

Spirit Airlines has filed for Chapter 11 bankruptcy protection due to losses, debt, and a failed merger. The company has secured a deal with bondholders for $300 million in financing to continue operations and plans to emerge from bankruptcy in the first quarter of 2025. Ticket sales and operations will continue as usual. CEO Ted Christie expressed confidence in the company’s long-term plan. The Dania Beach, Florida-based company had deferred $1.1 billion in debt payments and was last profitable in 2019. The deal includes a $350 million equity investment from bondholders to address $795 million in outstanding debt. The company’s share price fell after reports of the bankruptcy filing, and it had faced challenges including an engine recall in 2023 and a failed merger with JetBlue. Spirit had announced job cuts and the sale of older planes to save money. Analysts had predicted a restructuring and bankruptcy for the company following the failed merger.

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