Restructuring

Spirit Airlines, the largest ultra-low-cost carrier in the United States, has filed for Chapter 11 bankruptcy protection as it grapples with financial challenges stemming from the pandemic and failed merger attempts. The airline, which has incurred substantial losses since 2020, faces significant debt obligations and aims to utilize the bankruptcy process to restructure and reposition itself for future growth. Despite the bankruptcy filing, Spirit assures customers that operations will continue as usual, with no disruptions to bookings or flights. The airline also emphasized that employee wages and benefits will remain unaffected during the restructuring process. Spirit's financial woes stem from a combination of factors, including the sharp decline in air travel during the pandemic, rising operational costs, and increased competition from other low-cost carriers. While passenger numbers have rebounded, fares have remained low, impacting the airline's profitability. In an attempt […]