Spirit Airlines files for bankruptcy after string of losses, failed merger

Spirit Airlines has filed for bankruptcy protection after the pioneer of no-frills travel in the US struggled with a long run of quarterly losses, failed merger attempts and looming debt maturities.

The Florida-based airline said on Nov 18 that it pre-arranged a deal with its bond holders to restructure its debts and raise money to help it operate during the bankruptcy process, which it expects to exit in the first quarter of 2025.

The carrier said it expected to continue operating its business as normal through the proceedings, and customers could book and fly without interruption.

The Chapter 11 process will not impact wages or benefits of its employees, it said. Its vendors and aircraft lessors will also continue to be paid and will not be impaired, it added.

The company said it expected to be delisted from the New York Stock Exchange in the near term, and its shares to be cancelled and have no value as part of the restructuring.

Spirit, known for its bright yellow livery, is the first major US air-line to file for Chapter 11 in the past decade. It has been facing an uncertain future after the collapse of its US$3.8 billion (S$5.1 billion) planned merger with Iet Blue Airways in Ianuary.