Spirit Airlines Files For Chapter 11 Bankruptcy

CNBC reports:

Spirit Airlines, an icon of budget air travel that reshaped the industry, has filed for bankruptcy protection after years of mounting losses, a failed merger and more demanding consumer tastes.

The carrier early Monday said it reached a prearranged deal with its bondholders including $300 million in debtor-in-possession financing to help it through the bankruptcy, which it expects to exit in the first quarter of next year. It said that vendors, aircraft lessors will not be impaired.

The airline said it expects to continue operating normally and said told customers can continue to book as the busy holiday season approaches. Spirit is the first major U.S. airline to file for Chapter 11 since American Airlines 13 years ago.

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Spirit Airlines has filed for bankruptcy because of mounting losses and a failed JetBlue merger. The airline said it will continue to operate.

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— CNN (@cnn.com) November 18, 2024 at 5:36 AM