Spirit Airlines filed for Chapter 11 bankruptcy protection following significant financial struggles due to mounting losses and debt maturities.
Spirit is informing customers that can flights can still be booked and all tickets, credits and loyalty points can also be used as normal.
“This set of transactions will materially strengthen our balance sheet and position Spirit for the future while we continue executing on our strategic initiatives to transform our guest experience, providing new enhanced travel options, greater value and increased flexibility,” Spirit Airlines CEO Ted Christie said in a news release. “I’m extremely proud of the Spirit team’s hard work and dedication, which is key to our sustained progress in advancing our business and delivering for our guests.”
According to Christie, Spirit has entered into an agreement with its bondholders that is expected to reduce the company’s total debt and provide increased financial flexibility.
Spirit’s bankruptcy follows to unsuccessful attempts to merge with other discount airlines. Spirit, which is based in Dania Beach, Florida, sought a merger with Frontier Airlines, but the merger talks with Frontier Airlines’ parent company, Frontier Group Holdings, collapse and left Spirit’s financial future in jeopardy. An attempt to merge with JetBlue was blocked by the U.S. Department of Justice, which said that the merger would have raised prices for consumers
Last month, Spirit announced plans to sell multiple planes and cut staff numbers as it tried to raise cash and revive operations.
