A Spirit Airways aircraft prepares to depart from the Austin-Bergstrom Worldwide Airport. The low-cost service plans to maintain flying because it recordsdata for Chapter 11 chapter safety.
Brandon Bell/Getty Photos
conceal caption
toggle caption
Brandon Bell/Getty Photos
WASHINGTON — After years of economic losses and a failed merger try, Spirit Airways filed for Chapter 11 chapter safety on Monday.
The low-cost service announced it has reached a take care of its bondholders to restructure its money owed — and expects to proceed flying as regular throughout the chapter course of. It’s going to additionally ticket gross sales and credit issued.
“An important factor to know is which you could proceed to ebook and fly now and sooner or later,” the Florida-based service mentioned in an open letter to its customers.
Spirit is the primary main U.S. airline to file for Chapter 11 since 2011. Nonetheless, the transfer did not come as a surprise for the reason that firm hasn’t posted a full-year revenue since 2019.
Spirit, the nation’s seventh-largest service, tried to merge with JetBlue, the sixth-largest. However the deal was blocked by a federal judge in January after the Division of Justice and several other state attorneys normal sued to cease it.
Since then, Spirit has been shrinking its operations and promoting a few of its planes in an effort to chop prices and lift money.
“We count on to finish this course of within the first quarter of 2025 and emerge even higher positioned to ship the perfect worth within the sky,” the airline mentioned.
