The boy, 6, arrived in Orlando, Florida, instead of Fort Myers, where his grandmother lives.
Spirit Airlines has filed for Chapter 11 bankruptcy protection following major financial problems due to mounting losses and maturing debt, the airline announced Monday.
The filing comes after two failed mergers in less than two years — one recently with Frontier and another in early 2024 with JetBlue — that left the low-cost carrier in a bind after repeated quarterly losses.
In October, Spirit announced plans to sell more aircraft and lay off employees as it tries to raise cash and revive operations.
Spirit Airlines President and CEO Ted Christie said the airline has reached an agreement with its management that is expected to reduce the company’s debt and provide increased financial flexibility.
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Spirit Airlines has filed for Chapter 11 bankruptcy protection, the company announced Monday morning. (Airlines / Fox News)
“This set of operations will strengthen our balance sheet and position Spirit for the future as we continue our efforts to transform our guest experience, offering new and improved travel options, greater value and flexibility,” Christie’s said in a news release. . “I am extremely proud of the hard work and dedication of the Spirit team, which is the key to our continued progress in growing our business and delivering to our guests.”
The airline listed assets and liabilities of between $1 billion and $10 billion each, according to a court filing Monday.
The airline, as part of its planned Chapter 11 bankruptcy protection, received an equity investment commitment of $350 million from existing bondholders.
Existing bondholders will also provide $300 billion in debt financing (DIP), combined with cash flow, expected to support the airline through the Chapter 11 process.
SPIRIT AIRLINES UP THE ANTE WITH NEW TRAVEL OPTIONS OFFERING WI-FI, DISCOUNTS AND BUILT-IN BAGS
Travelers wheel luggage at the Spirit Airlines check-in desk at George Bush Intercontinental Airport, Tuesday, Nov. 21, 2023, in Houston. (Jason Fochtman/Houston Chronicle via Getty Images/Getty Images)
| A ticker | Security | Finally | Change | Change % |
|---|---|---|---|---|
| SAVE | SPIRIT AIRLINES INC. | 1.08 | -0.24 |
-18.06% |
Spirit shares will be canceled and become void as part of the airline’s restructuring, Spirit said in a release, following its delisting on the New York Stock Exchange “soon.”
The company started as a trucking company in 1964 before switching to aviation around 1983. It offered vacation packages to popular destinations under the name Charter One Airlines and was renamed Spirit in 1992.
The discount carrier is popular with budget-conscious customers willing to sacrifice features like checked bags and seat assignments.
The airline said the bankruptcy filing will not affect guests’ ability to book flights and travel as usual, or their ability to use tickets, credits and loyalty points. (Eva Marie Uzcategui/Bloomberg via Getty Images/Getty Images)
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Low-cost carriers, which have been most successful at keeping their costs low and offering inexpensive, no-frills travel, have struggled since the pandemic as travelers choose to pay more for comfortable travel as they pursue experience.
The airline said guests can still book flights and fly as normal, and all tickets, credits and loyalty points can also be used as normal.
Reuters contributed to this report.
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