Spirit Airlines files for bankruptcy amid growing losses and debt

By Free Republic | Created at 2024-11-18 16:34:28 | Updated at 2024-11-24 00:56:50 5 days ago

Spirit Airlines files for bankruptcy amid growing losses and debt
NBC News ^ | November 18, 2024 | Patrick Smith

Posted on 11/18/2024 8:14:37 AM PST by Red Badger

Spirit Airlines said Monday it has filed for Chapter 11 bankruptcy protection after struggling with losses, growing debt and a failed merger during the post-pandemic travel lull.

The company said in a stock market statement that it had secured a prearranged deal with bondholders that includes $300 million in financing to keep it afloat, with the business planning to end its bankruptcy in the first quarter of 2025.

Ticket sales and all other operations will continue as normal, the company said in the statement, which comes just 10 days before record numbers of travelers are expected to take to the skies over Thanksgiving.“I am pleased we have reached an agreement with a supermajority of both our loyalty and convertible bondholders on a comprehensive recapitalization of the Company, which is a strong vote of confidence in Spirit and our long-term plan,” Spirit CEO and president Ted Christie said in a statement.

“The most important thing to know is that you can continue to book and fly now and in the future," Christie said in a letter to customers.

The Dania Beach, Florida-based company had already deferred $1.1 billion in debt payments until next year and was last profitable in 2019.

The deal comes with a commitment of $350 million in equity investment from bondholders, which it said equates to $795 million of outstanding debt.

The company's share price fell from $3.22 to $1.15 last week after the Wall Street Journal reported it was preparing to file for bankruptcy protection, closing on $1.07 on Friday.

The company has had a tumultuous few years, with an engine recall in 2023 and a U.S. District Court judge blocking a proposed $3.8 billion merger with JetBlue in January. Spirit said last month it would cut jobs and sell 23 older planes in a bid to save $80 million.

Industry analysts said at the time that the court's decision left Spirit with few options but to face a likely restructure and bankruptcy.

TOPICS: Business/Economy
KEYWORDS: aviation

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1 posted on 11/18/2024 8:14:37 AM PST by Red Badger

To: 04-Bravo; 1FASTGLOCK45; 1stFreedom; 2ndDivisionVet; 2sheds; 60Gunner; 6AL-4V; A.A. Cunningham; ...

aviation ping!......................

2 posted on 11/18/2024 8:15:17 AM PST by Red Badger (Homeless veterans camp in the streets while illegals are put up in 5 Star hotels....................)

To: Red Badger

I wouldn’t book Spirit. Would you?

3 posted on 11/18/2024 8:16:55 AM PST by ComputerGuy (Heavily-medicated for your protection)

To: Red Badger

This would appear to be a restructuring bankruptcy, not the other kind....................

4 posted on 11/18/2024 8:17:08 AM PST by PeterPrinciple (Thinking Caps are not longer being issued, but there must be a warehouse full of them somewhere)

To: Red Badger

Wasn’t Jet Blue trying to buy or merge with them a few months ago?

I would not be surprised if they end up buying their planes and gates and everything else even cheaper now.

To: PeterPrinciple

Does this mean you don’t get peanuts with your water or Coke?

To: Red Badger

I was doing a contract-job in Ft Lauderdale and lived in my travel-trailer for the duration. There were 2 (gay) Spirit Pilots in the site next to mine. I knew when they were "home" because the place reeked of pot every time.

Decided Spirit was probably not the airline of safety. Never flew it again even though it has very convenient flights from FLL.

7 posted on 11/18/2024 8:20:06 AM PST by Damifino (The true measure of a man is found in what he would do if he knew no one would ever find out.)

To: ComputerGuy

I fly SOUL AIR.................

8 posted on 11/18/2024 8:23:41 AM PST by Red Badger (Homeless veterans camp in the streets while illegals are put up in 5 Star hotels....................)

To: woodbutcher1963

Does this mean you don’t get peanuts with your water or Coke?

For an additional fee.

9 posted on 11/18/2024 8:26:16 AM PST by Jeff Chandler (THE ISSUE IS NEVER THE ISSUE. THE REVOLUTION IS THE ISSUE.)

To: woodbutcher1963

Does this mean you don’t get peanuts with your water or Coke?

Yes.

But, you still get the free brawl.

10 posted on 11/18/2024 8:29:12 AM PST by Jane Long (Jesus is Lord!)

To: Red Badger

Gonna miss the brawls in the terminal during outgoing Chicago or NY flights.

11 posted on 11/18/2024 8:29:26 AM PST by FLNittany (Autotune is jealous of Karen Carpenter)

To: Red Badger

There are a couple of airlines I will not fly - ever - and Spirit tops the list. Sun Coast is another one.

Seems like every time I’ve read about a fight in an airline terminal or some aberrant behavior on an airline, it’s Spirit.

12 posted on 11/18/2024 8:31:22 AM PST by Bon of Babble (You Say You Want a Revolution?)

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