Spirit Airlines has filed for Chapter 11 bankruptcy protection, intending to continue operations as usual throughout the restructuring. Passengers can use their tickets, credits, and loyalty points, and employees will still be compensated. CEO Dave Davis noted that previous debt reduction efforts did not fully address ongoing challenges, including weak demand for domestic leisure travel and uncertainty in business operations, leading the company to seek additional restructuring.
Since the pandemic, Spirit has struggled with high operational costs and debt, accruing losses of over $2.5 billion since its 2020 launch. Despite restructuring in March and efforts to cut costs—including planned layoffs of pilots and downgrading some positions—Spirit requires further cash support and may consider selling aircraft and real estate.
As competition among low-cost airlines intensifies, Spirit is shifting its strategy to attract more upscale travelers with tiered pricing for tickets. Currently, Spirit operates over 5,000 flights to 88 destinations across the U.S., the Caribbean, and parts of Central America.
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