Spirit Airlines Files for Bankruptcy, Plans to Keep Flights Running Smoothly

Photo Credit: Tomás Del Coro, Wikimedia Commons Spirit Airlines, the country’s largest budget carrier, has filed for Chapter 11 bankruptcy protection in a bid to cut debt and secure its future.& The South Florida-headquartered airline, which has flights out of Chicago O’Hare International Airport, says it will continue operating normally.& For customers and employees, it’s business as usual. Tickets, credits, and loyalty points will still be valid. Vendors and employees will be paid. Spirit has lost more than $2.5 billion since 2020 and faces over $1 billion in looming debt payments in 2025 and 2026.& To tackle these challenges, the company reached a deal with bondholders to restructure its finances. As part of the plan, Spirit will receive a $350 million equity investment and convert $795 million of debt into stock. Bondholders are also extending a $300 million loan to keep operations running smoothly during the process. “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,” said CEO Ted Christie.& The airline has filed a reorganization plan in court with...