Spirit Airlines Files for Bankruptcy After Losses, Failed JetBlue Merger, Aims to Slash $1.1 Billion Debt

Nov 18, 2024, 11:13 AM

Spirit Airlines Inc., the largest U.S. budget carrier and pioneer of no-frills travel, filed for Chapter 11 bankruptcy protection on November 18, 2024, in a New York court. The airline has faced mounting financial losses, losing over $2.5 billion since the start of 2020, and aims to slash $1.1 billion in debt through the bankruptcy process. Contributing factors include significant debt maturities, increased competition, and failed merger attempts with JetBlue Airways Corp.—blocked by a federal judge—and Frontier Group Holdings Inc., which withdrew its acquisition bid. Spirit has struggled to recover from the pandemic-induced downturn in travel and changing consumer preferences. Despite the filing, the company announced it will continue to operate flights while restructuring its debt in an effort to reboot the airline.