Spirit Airlines Files For Bankruptcy As Losses Mount

Spirit Airlines has announced having filed for bankruptcy protection, marking an effort to restructure amid mounting financial challenges.

The largest budget airline in the US, Spirit has reported losses exceeding $2.5 billion since 2020 and faces over $1 billion in debt payments due in the next year. I Photo: Spirit Airlines Facebook

The airline, which has struggled to recover from pandemic-related losses and a failed acquisition deal with JetBlue, is working through a prearranged Chapter 11 bankruptcy process, David Koenig reported for Associated Press.

The largest budget airline in the US, Spirit has reported losses exceeding $2.5 billion since 2020 and faces over $1 billion in debt payments due in the next year.

Despite the filing, Spirit assured customers that its operations would continue as usual and that bookings and flights would not be interrupted. The last bankruptcy filing by a major US carrier occurred in 2013 when American Airlines emerged from Chapter 11 and merged with US Airways.

Shares of the Miramar, Florida-based airline fell 25% last Friday following reports by The Wall Street Journal about ongoing bankruptcy discussions with bondholders.

Spirit's stock has plummeted by 97% since 2018, when the airline was still profitable.

CEO Ted Christie confirmed in August that the company was prioritizing negotiations with bondholders over upcoming debt maturities. "We are working to secure the best deal possible, as quickly as we can," Christie said.