Spirit Airlines, the largest U.S. budget airline, filed for Chapter 11 bankruptcy protection after the carrier struggled with a long run of monthly losses, failed merger attempts and mounting debt after the post-pandemic travel lull.
The company says it has secured a prearranged deal with bondholders that includes $300 million in financing to keep it afloat, meaning all ticket sales and operations will continue as normal through the holiday season. The company hopes to exit bankruptcy in the first quarter of 2025 according to NBC News, although it may also soon be delisted from the New York Stock Exchange after its stock fell from $3.22 to $1.15 last week.
Spirit says it expects to continue its flight operations as normal and customers should be able to book and fly without interruption. The company also says all existing tickets, credits and loyalty points will remain valid, as well as the airline’s affiliated credit cards and other membership perks.
[Related: JetBlue Reduces L.A. Flights and Ends Service in Several U.S Cities]
What It Means for Planners
Prior to the bankruptcy filing, Spirit announced pilot furloughs and warned about potential capacity and flight cuts heading into 2025. While scheduled flights will not be affected, Spirit announced plans to cut its October-through-December schedule by nearly 20%, according to the Associated Press.
Spirit’s largest hubs that could be affected by the bankruptcy and measures to address it are Fort Lauderdale-Hollywood International Airport and Orlando International Airport. Experts say that competing budget airlines like Frontier, JetBlue and Southwest could capitalize on and fill in the gaps of Spirit’s flight schedules, creating fewer options for consumers looking for inexpensive travel to the Sunshine State.
While there may not be cause for alarm for flights booked on Spirit in the short-term, planners should be aware of Spirit’s struggles when choosing what airline to book with during the months to come.
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