JUST IN: Spirit Airlines Files For Bankruptcy Protection

November 18, 2024

USA, 18 NOV | Well-known US budget carrier, Spirit Airlines, has filed for Chapter 11 bankruptcy protection today after a long run of financial issues and debt. The airline has been operating since 1992, and is renowned for its bright yellow livery. Despite bankruptcy and restructuring proceedings, the airline will continue to operate flights as per usual for now.

Ultra-low-cost carriers such as Spirit have been suffering major losses ever since the start of the pandemic as demand shifted away from their business model. For Spirit specifically, 2 other key issues also led to its demise.

Firstly, problems with the Pratt & Whitney GTF engine grounded nearly 40 Airbus A320neo aircraft- nearly 20% of its fleet. This significantly stunted growth and operations, marking a major blow to the airline's financials.

Additionally, after the planned US$3.8 billion planned merger between Spirit and JetBlue got blocked earlier in the year, there was no more saving the airline from its already significant financial woes.

Only time can tell if the airline will emerge out of restructuring and recover from their billion dollar debt.

© 2024 Planeopedia LLP
Written by: Sohail Sawlani
All Rights Reserved
UEN: T23LL0860H

Sources

- Reuters