Spirit Airlines Files Prearranged Chapter 11 Bankruptcy to Slash $1.1 Billion Debt

Nov 18, 2024, 10:09 AM

Spirit Airlines Inc., the pioneer of no-frills travel in the US, filed for prearranged Chapter 11 bankruptcy protection in New York after a long run of quarterly losses and significant debt. The budget carrier, known as a budget travel icon, aims to slash $1.1 billion in debt while keeping its planes flying. The filing follows a series of setbacks, including increased competition from rival airlines, engine failures, and a blocked merger with JetBlue Airways Corp. Additionally, Frontier Group Holdings Inc. reportedly withdrew its acquisition bid for Spirit. Following the news, shares of Spirit Airlines (NASDAQ: SAVE) plummeted 61%.