Spirit Airlines files for bankruptcy

The Brief

  • Low-cost airline, Spirit Airlines, has filed for Ch. 11 bankruptcy protection
  • The airline tried to merge with JetBlue and Frontier, but both of those dealings failed.
  • Amid the court process, travelers will still be able to book flights and travel as normal. Tickets, credits, and loyalty points can also be used, Spirit said.

DANIA BEACH, Fla. Spirit Airlines has filed for Chapter 11 bankruptcy protection following significant financial struggles due to mounting losses and debt maturities, the airline announced Monday.

The filing comes after two failed mergers in less than two years – one recently with Frontier and another earlier in 2024 with JetBlue – which left the ultra-low-cost carrier in a bind after repetitive quarterly losses.

In October, Spirit announced plans to sell multiple aircraft and lay off workers as it tried to raise cash and revive operations.

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Spirit Airlines President and CEO Ted Christie said the airline has entered into an agreement with its bondholders that is expected to reduce the company’s total debt and provide increased financial flexibility.

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