By Haniyah Philogene/Originally published by thegrio
Spirit Airlines, recognized for its impact on budget-friendly traveling and reshaping the market, has filed for bankruptcy protection due to consecutive years of losses, a failed merger, rising competition, and evolving customer demands.
This week, the airline announced that a “prearranged” filing was made in the United States Bankruptcy Court for the Southern District of New York as part of a “restructuring support agreement” in a statement. While the company works to restructure its debt, Spirit says it will continue to operate through the holiday season and into 2025.
“Spirit expects to continue operating its business in the normal course throughout this prearranged, streamlined chapter 11 [bankruptcy] process,” the airline’s statement reads. “Guests can continue to book and fly without interruption and can use all tickets, credits, and loyalty points as normal.”
Additionally, the new filing will reportedly not impact employee’s wages and benefits.
As scary as the term may sound, Spirit is not the only U.S. airline to file for bankruptcy. Major competitors like American Airlines, United, and Delta Airlines have all filed for bankruptcy within the last 25 years. Just as other carriers have emerged stronger on the other side of bankruptcy filings, Spirit’s President and Chief Executive Officer, Ted Christie, hopes to do the same. The airline’s CEO asserts that the filling and negotiations with creditors will allow Spirit to enter the new year with less debt and more financial flexibility, positioning “Spirit for long-term success and accelerate investments providing guests with enhanced travel experiences and greater value.”
In an open letter to Spirit guests, the company assured travelers of what was to come.
“We’re still flying, so no need to have FOMO! You can continue to rely on Spirit for great value and excellent service,” the airline wrote on X, linking to the open letter, which 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 benefit from our Free Spirit loyalty program, Saver$ Club perks, and credit card terms. Our amazing Team Members are here to offer you excellent service and an elevated experience. 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.”
