Spirit Airlines files for Chapter 11 bankruptcy protection

Spirit Airlines filed for Chapter 11 bankruptcy protection Monday, months after a federal judge blocked the low-cost carrier’s proposed merger with JetBlue.

The Florida-based company published an open letter on Monday to those who have booked tickets for future flights. Flights, ticket sales and other operations will continue as normal, the airline states.

“The most important thing to know is that you can continue to book and fly now and in the future,” the letter said.

The airline filed with the US Bankruptcy Court for the Southern District of New York and said in an accompanying news release that it was trying to restructure and reduce its debt.

JetBlue and Spirit had proposed a merger and signed an agreement in July 2022, a deal the low-cost carriers said would improve their ability to attract customers away from larger competitors.

But they jointly announced in March 2024 that they would terminate the deal, saying they were unlikely to obtain legal and regulatory approval before the merger deadline of July 2024. The Justice Department had sued to block the merger.

A supermajority of the company’s bondholders had voted in favor of the bankruptcy filing, CEO and President Ted Christie said in a statement Monday.

He positioned the restructuring as a “vote of confidence” in Spirit and its long-term planning.

“This set of transactions will significantly strengthen our balance sheet and position Spirit for the future as we continue to execute our strategic initiatives to transform our guest experience, providing new enhanced travel options, greater value and increased flexibility,” he said.

Spirit said it expects the restructuring process to be completed in the first quarter of 2025.

The airline’s shares, which trade under the ticker SAVE, fell more than 60% last week.