Spirit is filing for bankruptcy after years of quarterly losses and mounting debt. The ultra-low-cost airline announced plans early Monday morning to begin the Chapter 11 process.
In a letter to customers, the carrier said it plans to continue operating normally. “The most important thing to know is that you can continue to book and fly now and in the future,” it said.
The airline expects to complete the “streamlined” Chapter 11 process in the first quarter of 2025, adding that it plans to “emerge even better positioned to deliver the best value in the sky.”
As part of the bankruptcy process, Spirit will be delisted from the New York Stock Exchange.
“The chapter 11 process itself will not impact Team Member wages or benefits, which are continuing to be paid and honored for those employed by Spirit,” the carrier said in a news release. “Vendors, aircraft lessors and holders of secured aircraft indebtedness will continue to be paid in the ordinary course and will not be impaired.”
Mounting Issues
The financially crippled airline has reported continued quarterly losses since the COVID-19 pandemic. Earlier this year, a federal judge struck down a proposed merger with JetBlue.
As a result, Spirit has aggressively cut costs, including the removal of over 20 Airbus A320-series aircraft from its fleet. The airline has also furloughed 186 pilots this year with plans to cut 330 more in early 2025.
Both Spirit and Frontier engaged in last-ditch talks over a merger in October, according to reports, but those discussions fell through.
The last major U.S. passenger carrier to file for Chapter 11 protection was American Airlines in 2011. The airline emerged from the bankruptcy process as the American Airlines Group before later merging with US Airways in 2013.
