Spirit Airlines Files for Bankruptcy — What That Means for Holiday Travel Plans
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11/18/2024 11:22 AM
The Florida-based airline known for its low cost fares confirmed the "prearranged" filing is part of a restructuring plan in a statement on Monday, Nov. 18
Spirit Airlines has filed for chapter 11 bankruptcy just before the peak holiday travel season.
The airline confirmed the "prearranged" filing was made in the United States Bankruptcy Court for the Southern District of New York as part of a "restructuring support agreement" according to a statement released on Monday, Nov. 18. The news comes amid the company's unsuccessful mergers with other carriers and growing debt.
Despite the filing, Spirit says it will continue to operate as normal throughout the holiday season and into 2025.
"Spirit expects to continue operating its business in the normal course throughout this prearranged, streamlined chapter 11 process," the statement reads. "Guests can continue to book and fly without interruption and can use all tickets, credits and loyalty points as normal."
The company also notes that employee wages and benefits will not be affected.
The Dania Beach, Fla.-based airline's latest move comes after a rocky past few years due to its failed mergers with Frontier Airlines and JetBlue.
In addition to the $3.8 billion merger between JetBlue and Spirit being blocked by a U.S. District Court judge in January, the airline also faced an engine recall in 2023, per NBC News.
Related: Frontier and Spirit Are Merging to Create Fifth-Largest Airline in the United States
Spirit's President and CEO Ted Christie said in a statement: "I am pleased we have reached an agreement with a supermajority of both our loyalty and convertible bondholders on a comprehensive recapitalization of the Company, which is a strong vote of confidence in Spirit and our long-term plan."
He added, "I'm extremely proud of the Spirit team's hard work and dedication, which is key to our sustained progress in advancing our business and delivering for our Guests."
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Spirit made headlines last week when a raccoon fell out of the ceiling in its check-in area at New York's LaGuardia airport.
