Spirit Airlines files for bankruptcy – what it means for holiday flights

Spirit Airlines has filed for Chapter 11 bankruptcy just before the peak holiday travel season.

The airline confirmed that the “pre-arranged” filing was filed in the United States Bankruptcy Court for the Southern District of New York as part of a “restructuring support agreement,” according to a declaration published on Monday 18 November. The news comes amid the company’s failed mergers with other airlines and growing debt.

Despite the filing, Spirit says it will continue to operate as normal throughout the holiday season and into 2025.

“Spirit expects to continue to operate its business in the normal course through this pre-arranged, streamlined Chapter 11 process,” the statement read. “Guests can continue to book and fly without interruption and can use all tickets, credits and loyalty points as normal.”

The company also notes that employee wages and benefits will not be affected.

The Dania Beach, Fla.-based airline’s latest move comes after the past few years due to its failed mergers with Frontier Airlines and JetBlue.

In addition to the $3.8 billion merger between JetBlue and Spirit being blocked by a U.S. district judge in January, the airline also faced an engine recall in 2023, as of NBC News.

Spirit President and CEO Ted Christie said in a statement: “I am pleased that we have reached an agreement with a supermajority of both our loyalty and convertible bondholders on a comprehensive recapitalization of the company, which is a strong vote of confidence in Spirit and our long-term plan.”

He added: “I am extremely proud of the Spirit team’s hard work and dedication, which is key to our continued progress in advancing our business and delivering to our guests.”

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Spirit made headlines last week when a raccoon fell from the ceiling of its check-in area at New York’s LaGuardia Airport.