Spirit Airlines files for bankruptcy amid surge in holiday travel

Spirit Airlines, recognized for influencing cost-effective travel and reworking the market, has filed for bankruptcy protection amid consecutive years of losses, a failed merger, growing competition and changing customer demands.

This week, the airline announced that an “orderly” petition has been filed with the U.S. Bankruptcy Court for the Southern District of New York as a part of a “restructuring support agreement” as a part of the statement. Spirit says that while the corporate is working to restructure its debt, it should proceed operations through the holiday season and into 2025.

“Spirit expects to continue its operations in the normal course throughout the planned and streamlined Chapter 11 (bankruptcy) process,” the airline said in an announcement. “Guests can continue to book and fly without interruption and use all tickets, points and loyalty points as normal.”

Additionally, the brand new filing won’t impact worker salaries and advantages.

While this term may sound scary, Spirit isn’t the one US airline to declare bankruptcy. Major competitors corresponding to American Airlines, United and Delta Airlines have filed for bankruptcy over the past 25 years. Just as other carriers have emerged stronger since filing for bankruptcy, Spirit President and CEO Ted Christie hopes to do the identical. The airline’s CEO asserts that restocking the airline and negotiating with creditors will allow Spirit to enter the brand new yr with less debt and greater financial flexibility, which can position “Spirit for long-term success and accelerate investment, providing guests with a better travel experience and greater value.” .

In open letter to Spirit gueststhe corporate assured travelers of what was to come back.

“We’re still flying, so no need for FOMO! You can continue to rely on Spirit for great quality and excellent service,” the airline wrote on Xwith a link to the open letter that read: “The most important thing to know is that you (customers) can continue to book and fly now and in the future. We also want to assure you that you can use all tickets, credits and loyalty points as normal. You can continue to take advantage of our Free Spirit loyalty program, Saver$ Club bonuses and credit card terms and conditions. Our amazing team members are here to offer you excellent service and an exceptional experience. We expect to complete this process in the first quarter of 2025 and be even better positioned to deliver the best value in the sky.”