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Spirit Airlines files for Chapter 11 bankruptcy protection

Spirit Airlines announced Monday that it has filed for Chapter 11 bankruptcy protection due to significant financial difficulties due to mounting losses and maturing debt.

The filing comes after two failed mergers within two years. The recent mergers with Frontier and JetBlue in early 2024 have left the ultra-low-cost airline struggling with quarterly losses.

In October, Spirit announced plans to sell several aircraft and lay off employees in an effort to raise funds and rebuild its operations.

Spirit prepares to file for bankruptcy after failed Frontier negotiations: Report

Spirit Airlines has filed for Chapter 11 bankruptcy, the company announced Monday morning. (Spirit Airlines/FOX News)

Spirit Airlines President and CEO Ted Christie said the company's agreement with bondholders is expected to reduce the company's total debt and increase its financial flexibility. said.

“These transactions materially strengthen our balance sheet, position Spirit for the future, and continue our strategic efforts to transform the guest experience with new and enhanced more travel options, greater value and greater flexibility,” Christie said in a news release. . “I am extremely proud of the hard work and dedication of the Spirit team, which is key to our continued progress in moving our business forward and serving our customers.”

The airline said the bankruptcy filing will not affect guests' ability to book flights or travel as usual or use their tickets, credits or loyalty points. (Eva Marie Uzcategui/Bloomberg via Getty Images/Getty Images)

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The airline said guests can still book and fly flights as usual, and all tickets, credits and loyalty points can be used as usual.

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