Spirit Airlines filed for Chapter 11 Bankruptcy on Monday before Thanksgiving week.
The airliner is trying to restructure its debt after a failed merger with JetBlue earlier this year.
The company said operations will continue as normal as Americans prepare to travel for the Thanksgiving holiday.
BREAKING: Spirit, the biggest U.S. budget airline, said that it has filed for bankruptcy protection and will attempt to reboot as it struggles to recover from the pandemic-caused swoon in travel and a failed attempt to sell the airline to JetBlue. https://t.co/bmymUh2bnk
— The Associated Press (@AP) November 18, 2024
NBC News reported:
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.
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