Spirit Airlines announced on Monday that it has filed for bankruptcy protection in an effort to restructure its operations following significant financial challenges exacerbated by the COVID-19 pandemic and failed acquisition talks with JetBlue. The largest U.S. budget airline has reported losses exceeding $2.5 billion since the beginning of 2020, with upcoming debt payments exceeding $1 billion within the next year.
Despite the bankruptcy filing, Spirit reassured customers that operations will continue as usual during the Chapter 11 process. Existing tickets, credits, loyalty points, affiliated credit cards, and membership benefits remain valid. The airline's stock plummeted by 25% on Friday amid reports of potential bankruptcy discussions with bondholders, marking a 97% decline since late 2018.
