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 stay afloat and plans to emerge from bankruptcy in the first quarter of 2025. Ticket sales and operations will continue as normal. CEO Ted Christie assured customers that they can still book and fly with the company. The company had deferred $1.1 billion in debt payments and last turned a profit in 2019. The deal includes $350 million in equity investment from bondholders, totaling $795 million of debt. Spirit’s share price dropped after reports of the bankruptcy filing. The company faced challenges, including an engine recall and a blocked merger with JetBlue. Spirit recently announced job cuts and the sale of older planes to save money. Analysts predicted bankruptcy for the company following the failed merger.

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