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Spirit Airlines filed for Chapter 11 bankruptcy protection, the company announced on Monday. The reasons given for the filing were increased losses, mounting debt, and increased competition.
In a statement posted to the company’s website, Spirit Airlines said that despite the bankruptcy filing, “Spirit expects to continue operating its business in the normal course throughout this prearranged, streamlined chapter 11 process. Guests can continue to book and fly without interruption and can use all tickets, credits and loyalty points as normal. The chapter 11 process itself will not impact Team Member wages or benefits, which are continuing to be paid and honored for those employed by Spirit. Vendors, aircraft lessors and holders of secured aircraft indebtedness will continue to be paid in the ordinary course and will not be impaired.”
Yeah. I will not be flying with the literally bankrupt airline.
— Alex (The Ohio Beer Guy)🇵🇸 (@CLE_Comrade) November 18, 2024
As a result of the bankruptcy filing, Spirit Airlines reportedly expects to be de-listed from the New York Stock Exchange and its common stock is expected to be canceled and have zero value going forward. The airline reported operating losses of $360 million in the first six months of 2024.
“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,” Spirit Airlines President and CEO Ted Christie said in a statement. “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.”
Spirit Airlines, which started out as a long-haul trucking company in 1964, merged with Frontier Airlines and JetBlue in 2022. In March 2024, JetBlue announced that it has reached an agreement with Spirit Airlines to terminate their merger agreement.
Under the agreement to terminate the merger, JetBlue announced it would pay Spirit $69 million.
“We believed this merger was worth pursuing because it would have unleashed a national low-fare, high-value competitor to the Big Four airlines,” said Joanna Geraghty, chief executive officer, JetBlue. “We are proud of the work we did with Spirit to lay out a vision to challenge the status quo, but given the hurdles to closing that remain, we decided together that both airlines’ interests are better served by moving forward independently. We wish the very best going forward to the entire Spirit team.”
Much like when Spirit merged with Frontier, the internet, well aware of all of the bizarre issues the airline has faced over the years, reacted with numerous jokes and memes.
I have heard nothing but positive things about Spirit Airlines can’t imagine why it went bankrupt. @stoolpresidente And……It’s Gone pic.twitter.com/CivXqmHHPN
— CrakRok (@CrakRok) November 18, 2024
“Might be for the best,” someone else joked.
“Who would have guessed that their terrible customer service, and terrible quality would’ve come to this?” someone else wrote.
“Going to miss the fighting videos,” another post read.
I’m sure other airlines can’t wait to bring Spirit Airlines employees on to their teams to increase internal morale and customer satisfaction.
— Cryptid Politics (pro-DeSantis) 🇺🇸🐊 (@CryptidPolitics) November 18, 2024