Additional Coverage:
- Spirit Airlines files for bankruptcy (newsbreak.com)
Spirit Airlines Files for Bankruptcy
Spirit Airlines, the largest U.S. budget airline, has filed for bankruptcy protection to recover from the pandemic’s impact on travel and failed merger attempts.
No Immediate Impact on Flights
Despite the filing, Spirit emphasizes that its operations will continue as usual. Customers can book and fly without interruption, and employee wages and benefits will remain unchanged.
Financial Struggles
Since 2020, Spirit has lost over $2.5 billion and faces looming debt payments. The airline was unlikely to meet these obligations without bankruptcy protection.
Reasons for Slump
Spirit’s decline is attributed to rising costs, increased competition, and a shift in travel preferences towards higher-end options. The airline recently introduced bundled fares with amenities like extra legroom and free bags, but its traditional no-frills strategy has been less successful.
Cost-Cutting Measures
Spirit plans to cut its schedule by 20% from October to December and implement $80 million in cost-cutting measures, primarily through workforce reductions and aircraft sales.
Failed Mergers
Attempts to merge with Frontier Airlines and JetBlue failed due to antitrust concerns.
Historical Context
U.S. airline bankruptcies were common in the past, but the last major bankruptcy ended in 2013 when American Airlines emerged from Chapter 11 protection.
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- Spirit Airlines files for bankruptcy (newsbreak.com)