Bankruptcy filing made by Spirit Airlines

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Spirit Airlines has filed for Chapter 11 bankruptcy protection due to losses, debt, and a failed merger in the post-pandemic travel slowdown. The company has secured a deal with bondholders for $300 million in financing to stay afloat, with plans to emerge from bankruptcy in the first quarter of 2025. Ticket sales and operations will continue as usual. CEO Ted Christie emphasized that customers can still book and fly with the airline. The company had already deferred $1.1 billion in debt payments and last saw profits in 2019. The deal includes a commitment of $350 million in equity investment from bondholders, totaling $795 million of outstanding debt. Spirit’s stock price dropped from $3.22 to $1.07 after reports of the bankruptcy filing. The airline has faced setbacks in recent years, including an engine recall and a blocked merger with JetBlue. To save money, Spirit plans to cut jobs and sell older planes. Industry analysts predict a restructuring and bankruptcy for the company.

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