A Spirit Airlines plane prepares to depart from Austin-Bergstrom International Airport. The low-cost carrier plans to continue operating while it files for Chapter 11 bankruptcy protection. Brandon Bell/Getty Images Hide Caption
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Brandon Bell/Getty Images
WASHINGTON — After years of financial losses and a failed merger plan, Spirit Airlines filed for Chapter 11 bankruptcy Monday.
The low-cost carrier said it had reached an agreement with bondholders to restructure its debt and expects to continue operating normally during the bankruptcy process. We also sell tickets and issue credits.
“The most important thing to know is that you can continue to book and fly now and in the future,” the Florida-based airline said in an open letter to customers.
Spirit is the first major U.S. airline to file for Chapter 11 protection since 2011. Still, the move wasn’t surprising, as the company hasn’t posted a full-year profit since 2019.
Spirit, the nation’s seventh-largest airline, attempted to merge with JetBlue, the sixth-largest airline. But the deal was blocked by a federal judge in January after the Justice Department and several state attorneys general sued to block it.
Since then, Spirit has scaled back operations and sold some aircraft to cut costs and raise cash.
“This process will be completed in the first quarter of 2025, putting us in an even better position to deliver the best value in the skies,” the airline said.
