Spirit Airlines, which has several routes in and out of Nevada, has filed for bankruptcy.
The company’s announcement early Monday, Nov. 18, was quickly followed by this statement to alleviate travel concerns, especially with the approach of Thanksgiving next week:
“Spirit expects to continue operating its business in the normal course throughout this prearranged, streamlined chapter 11 process,” said Michael Lopardi, media relations manager, in an email.
Here’s what you should know.
Spirit Airlines files for bankruptcy, starts ‘restructuring’
“Spirit Airlines just announced that it has entered into a restructuring support agreement to reduce the company’s debt, provide increased financial flexibility, and position Spirit for long-term success,” Lopardi said.
In an open letter posted on its website, Spirit said it was taking this “proactive step” to “position the company for success.”
“Spirit has entered into an agreement with our bondholders that is expected to reduce our total debt, provide increased financial flexibility, position Spirit for long-term success and accelerate investments providing Guests with enhanced travel experiences and greater value. Part of this financial restructuring includes filing a ‘prearranged’ chapter 11. “
How long will Spirit take to restructure?
“We expect to complete this process in the first quarter of 2025 and emerge even better positioned to deliver the best value in the sky,” the company said on its website.
“This set of transactions will materially strengthen our balance sheet and position Spirit for the future while we continue executing on our strategic initiatives to transform our Guest experience, providing new enhanced travel options, greater value and increased flexibility,” said Ted Christie, Spirit’s president and chief executive officer.
“I’m extremely proud of the Spirit team’s hard work and dedication, which is key to our sustained progress in advancing our business and delivering for our Guests.”
Flying Spirit? You can use that ticket, book new flights
“Guests can continue to book and fly without interruption,” Lopardi said.
The company said flights, ticket sales, reservations and all other operations will continue as normal during this period.
Will I lose my Spirit loyalty points?
No.
“Guests can continue to book and fly without interruption and can use all tickets, credits and loyalty points as normal.”
Spirit Airlines merger with JetBlue fails
Earlier this year, a $3.8 billion merger attempt with JetBlue Airways fell through.
In October, Spirit told Reuters it would furlough about 330 pilots on Jan. 31, 2025, as part of its efforts to cut costs.
Spirit Airline stocks and shares 2024
As a result of the chapter 11 filing, Spirit expects to be delisted from the New York Stock Exchange in the near term.
Spirit customer service
You can contact Spirit Airline’s customer service here.
Contributor: Zach Wichter, USA Today
Carly Sauvageau contributed to this report.