Spirit Airlines Files for Bankruptcy After Failed JetBlue Merger and Mounting Losses

Nov 18, 2024, 11:58 AM

Spirit Airlines (NYSE: SAVE), the largest U.S. budget airline, filed for Chapter 11 bankruptcy protection in a New York court on Monday amid mounting financial losses and significant debt maturities. The airline has struggled to recover from the pandemic-induced downturn in travel and faced increased competition from rival carriers. A failed merger with JetBlue Airways, blocked by a federal judge earlier this year, and the withdrawal of an acquisition bid by Frontier Group Holdings (NASDAQ: ULCC) led to a 61% plunge in Spirit's share price. Spirit aims to slash $1.1 billion in debt while continuing flight operations. The carrier has reported losses exceeding $2.5 billion since 2020 and faces over $1 billion in debt payments over the next year. Despite the bankruptcy filing, Spirit Airlines assured customers that flights, tickets, and loyalty programs remain unaffected as it restructures its debt.