Spirit Airlines: A Budget Pioneer's Bankruptcy Journey

Once a trailblazer in budget air travel, Spirit Airlines has filed for bankruptcy protection. The airline faced a storm of issues: mounting losses, a failed merger, and changing consumer tastes. Despite these hurdles, Spirit aims to keep flying smoothly. "Keep booking, no worries! " said their CEO, Ted Christie. Spirit struck deals with bondholders, securing $300 million for the journey through bankruptcy. They expect to exit by early next year without harming vendors or aircraft leasors.This marks the first major U. S. airline bankruptcy since American Airlines 13 years ago. Factors like engine recalls, post-pandemic costs, and a blocked JetBlue merger added to the strain. Spirit's shares tumbled over 90% this year. They've negotiated to turn $795 million of debt into equity. The busy holiday season isn't expected to be disrupted, and customers can continue using tickets, credits, and loyalty points as usual.