After failing to merge with Frontier Airlines and then blocked from merging with JetBlue by the Department of Justice, Spirit Airlines this week ended up in bankruptcy. But the airline says travelers shouldn’t worry; “you can continue to book and fly now, and in the future.”
The biggest US budget airline filed a Chapter 11 bankruptcy petition after losing more than $2.5 billion since 2020 and facing debt of more than $1 billion in 2025 and 2026.
Spirit’s 90 daily flights from Fort Lauderdale-Hollywood International Airport and Miami International Airport will continue as usual, the company said, and travelers “can [continue] to book and fly without interruption and can use all tickets credits and loyalty points as normal.”
The company’s 21,000 employees and all their vendors also will continue to receive regular paychecks.
In an open letter to customers, Spirit said, “We expect to complete this process in the first quarter of 2025 and emerge even better positioned to deliver the best value in the sky. Other airlines that are operating successfully today have undertaken a similar process. For more information about our financial restructuring, please visit www.SpiritGoForward.com. We’re grateful you continue to choose Spirit for your travel needs. As we head into the holiday season and beyond, we look forward to welcoming you on board again soon.”
“I am pleased we have reached an agreement with a supermajority of both our loyalty and convertible bondholders on a comprehensive recapitalization of the company, which is a strong vote of confidence in Spirit and our long-term plan,” said Spirit president and CEO Ted Christie said in a statement. A new $350 million equity investment from bondholders plus $300 million in other financing “will materially strengthen our balance sheet and position Spirit for the future.”
