The founder of points Guy, Brian Kelly, explains how the bankruptcy of Spirit Airlines could affect trips.
After having filed a balance sheet less than a year ago, Spirit Airlines again spends the same process after a failed reorganization of the airline at a reduced price in difficulty, the company announced on Friday.
The president and chief executive officer of the airline, Dave Davis, wrote in an open letter to customers that the restructuring process of Chapter 11 “would ensure the long -term success of our company so that we can continue to serve our guests in the future”.
Spirit added that “almost all the major airlines have used these tools to improve their companies and position them for long -term success”.
The airline filed for the first time in November after two missed mergers in the previous two years with Frontier and Jetblue.
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After having filed a balance sheet less than a year ago, Spirit Airlines again spends the same process after a failed reorganization of the airline at a reduced price in difficulty, the company announced on Friday. (Reuters / Mike Blake / Reuters)
Spirit, an ultra-faible cost airline, has struggled to compete with other large airlines that offer different levels of service and fly to more destinations.
The airline has assured customers that it would continue to operate normally throughout the bankruptcy process, and passengers could use tickets, credits and loyalty points on flights.
| Teleprinter | Security | Last | Change | Change % |
|---|---|---|---|---|
| Spor | Spiritual aerosystems | 41.58 | -0.22 |
-0.53% |
“Our team members remain focused on offering you a safe trip, with excellent service and high experience,” said Davis.
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The airline without frills tried to rename itself as a higher end because customer preferences have moved away from low cost, but it fought with budget cuts and less demand created by uncertainty in the economy.
Travelers Wheel Luggage to the Spirit Airlines recording office at George Bush Intercontinental airport in Houston. (Jason Fochtman / Houston Chronicle via Getty Images / Getty Images)
“Since the release of our previous restructuring, which was targeted exclusively on the reduction of the financed debt of Spirit and the rise in equity, it has become clear that there is much more work to do, and many other tools are available for the best spirits for the future,” said Davis earlier this month.
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A Spirit Airlines plane on the Tarmac of Las Vegas International Airport. ()
The carrier said that in a commission of securities and exchanges which continues to be assigned by “unfavorable conditions of the market”, including a low continuous request for interior leisure travel in the second quarter of 2025. Persistent challenges created a “difficult price environment,” said the airline.
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The airline can get rid of certain planes and reduce the number of destinations to which it steals, the Wall Street Journal reported.
“This afternoon, Spirit Airlines announced a complete restructuring of the airline to position the company for long-term success,” Spirit Business told Fox. “To facilitate this process, the company has filed voluntary petitions for Chapter 11 before the American bankruptcy court for the South New York district.”
Reuters contributed to this report.
