Budget travel icon Spirit Airlines files for bankruptcy protection after mounting losses
Last edited Mon Nov 18, 2024, 06:13 AM - Edit history (1)
Source: CNBC
Published Mon, Nov 18 2024 5:07 AM EST | Updated 3 Min Ago
Spirit Airlines, an icon of budget air travel that reshaped the industry, has filed for bankruptcy protection after years of mounting losses, a failed merger and more demanding consumer tastes.
The carrier early Monday said it reached a prearranged deal with its bondholders including $300 million in debtor-in-possession financing to help it through the bankruptcy, which it expects to exit in the first quarter of next year. It said that vendors, aircraft lessors will not be impaired.
The airline said it expects to continue operating normally and said told customers can continue to book as the busy holiday season approaches. “The most important thing to know is that you can continue to book and fly now and in the future,” Spirit CEO Ted Christie said in a letter to customers on Monday. He said customers can use tickets, credits and loyalty points normally.
Spirit is the first major U.S. airline to file for Chapter 11 since American Airlines 13 years ago.
Read more: https://www.cnbc.com/2024/11/18/spirit-airlines-files-bankruptcy-protection.html
Article updated.
Original article -
Spirit Airlines, an icon of budget air travel that reshaped the industry, has filed for bankruptcy protection after years of mounting losses, a failed merger and more demanding consumer tastes.
The carrier early Monday announced a prearranged deal with its bondholders including $300 million in debtor-in-possession financing. It said that vendors, aircraft lessors will not be impaired. The airline said it expects to continue operating normally “throughout this prearranged, streamlined chapter 11 process” and said customers can continue to book.
The Dania Beach, Florida-based airline had struggled with an engine recall that grounded dozens of its jets, a surge in costs after the pandemic, and the failure of its planned acquisition by JetBlue Airways, which was blocked by a federal judge earlier this year on antitrust grounds. Its shares are down more than 90% so far this year.
Spirit is the first major U.S. airline to file for Chapter 11 since American Airlines 13 years ago