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.
Flight 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 company had already deferred $1.1 billion in debt payments until next year.
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