Spirit Airlines has filed for Chapter 11 bankruptcy protection, becoming the first major U.S. passenger carrier to do so since American Airlines 13 years ago. This move allows the airline to restructure its business and stabilize its finances without ceasing operations.
The airline's financial struggles began in 2019 and were worsened by the COVID-19 pandemic, engine recalls, and a blocked acquisition by JetBlue Airways.
Travelers should be aware of potential schedule changes and operational adjustments during the restructuring process. Obtaining refunds for canceled flights may be more challenging due to the bankruptcy proceedings. Customers may have recourse through their credit card providers under the Fair Credit Billing Act.
CEO Ted Christie assures customers that they can continue to book flights and use loyalty points or credits as usual.
Spirit Airlines has reached an agreement with bondholders for a streamlined Chapter 11 bankruptcy protection plan and aims to emerge from the process in the first quarter of 2025.
The restructuring could lead to a more cost-efficient operation for Spirit Airlines and may reshape the competitive landscape in the airline industry.