Spirit Airlines, Largest U.S. Budget Airline, Files for Bankruptcy Amid Mounting Losses

Nov 18, 2024, 12:59 PM

Spirit Airlines, the largest U.S. budget carrier, has filed for Chapter 11 bankruptcy protection in New York after losing over $2.5 billion since 2020 and facing debt payments exceeding $1 billion in the next year. The airline plans to slash $1.1 billion in debt through the bankruptcy process. Spirit will continue operating flights while restructuring its debt, assuring customers that tickets, credits, and loyalty points remain valid. The bankruptcy filing follows a federal judge's decision earlier this year to block Spirit's proposed $3.8 billion merger with JetBlue Airways, citing antitrust concerns. Spirit's financial struggles were exacerbated by the pandemic-induced decline in travel and engine issues that grounded parts of its Airbus A320 fleet. The airline aims to exit Chapter 11 in early 2025 as a leaner, more competitive carrier.