Spirit Airlines filed for Chapter 11 bankruptcy protection on November 18, 2024, after struggling with mounting debt and a failed merger with JetBlue. The airline, known for its ultra-low-cost model, listed assets between $1 billion and $10 billion and liabilities of $1 billion to $10 billion, according to court filings in the Southern District of New York.
Despite the bankruptcy filing, Spirit has stated that operations will continue as normal. The airline has secured a commitment from existing bondholders for a $350 million equity investment to support its restructuring plan. Spirit expects to emerge from bankruptcy in the first quarter of 2025, pending court approval.
The bankruptcy follows a turbulent period for Spirit, including a federal judge blocking its proposed $3.8 billion merger with JetBlue Airways in January 2024 on antitrust grounds. The airline also reported a net loss of $158.3 million in the third quarter of 2024, contributing to its financial difficulties.
Spirit's filing does not mean an immediate shutdown. The Chapter 11 process allows the airline to reorganize its debts while continuing to fly passengers. However, the long-term viability of the carrier remains uncertain as it faces competition from other low-cost carriers and legacy airlines.
