Spirit Airlines Files for Chapter 11 Bankruptcy Following Years of Financial Struggles

The low-cost carrier seeks to restructure $3.8 billion in debt while continuing operations and securing new financing.

Spirit Airlines has filed for Chapter 11 bankruptcy to address $3.8 billion in debt, marking the first U.S. airline bankruptcy in over a decade.
The airline has secured $300 million in debtor-in-possession financing and a $350 million equity investment from bondholders to support its restructuring process.
Spirit's financial troubles stem from pandemic-related losses, rising labor and operating costs, and failed merger attempts with Frontier Airlines and JetBlue.
The proposed reorganization plan will eliminate $795 million in debt and hand 76% ownership of the company to senior secured noteholders, while canceling existing equity interests.
Despite the bankruptcy filing, Spirit plans to maintain normal operations, allowing customers to continue booking flights and using loyalty points without disruption.