Spirit Airlines on Monday has commenced a prearranged chapter 11 process in the United States Bankruptcy Court for the Southern District of New York. The restructuring, according to the airline, is expected to reduce its debt, provide increased financial flexibility, position Spirit for long-term success and accelerate investments providing guests with enhanced travel experiences and greater value.
Noting in a letter to its guests that “other airlines that are operating successfully today have undertaken a similar process” (which includes the likes of American in 2011, Delta in 2005 and United in 2002), Spirit expects to continue operating its business in the normal course throughout this streamlined chapter 11 process. This means guests can continue to book and fly without interruption and can use all tickets, credits and loyalty points as normal.
Good to know: The chapter 11 process itself will not impact employee wages or benefits, which will continue to be paid and honored.
Spirit says it expects to complete this process in the first quarter of 2025. As a result of the chapter 11 filing, Spirit expects to be delisted from the New York Stock Exchange in the near term.
Over summer, Spirit announced plans to overhaul its operations. As part of these moves, the carrier intended to scrap its open seating policy, create up to four new seating options (including premium options), debut a priority check-in and boarding experience, and more.
The airline also saw two potential mergers—with JetBlue and Frontier—fall through. The deals went as far back as 2022 before reaching a standstill this March.
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