Spirit Airlines has filed for Chapter 11 bankruptcy amid mounting business debts and stiff market competition.
The company disclosed its bankruptcy on Monday after previous measures were taken to raise cash, including laying off workers and selling aircraft. Companies use Chapter 11 bankruptcy to allow themselves to financially restructure.
Spirit is a budget airline that offers flights to 47 domestic locations across the U.S. as well as 28 international locations, including airports in the Caribbean and Latin America.
Many passengers are now wondering what this means for their plans to fly with Spirit Airlines in the future.
Will My Flight Be Canceled After Sprit Airlines Filed for Bankruptcy?
Spirit Airlines has reassured customers that their flights will go ahead as normal and will not be affected.
The airline told Newsweek: "Spirit expects to continue operating its business in the normal course throughout this prearranged, streamlined Chapter 11 process."
In an open letter to customers, Spirit added: "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. Other airlines that are operating successfully today have undertaken a similar process."
Indeed, airlines that have taken similar measures previously include American Airlines and United.
Can I Still Book With Sprit Airlines?
Yes, customers who wish to travel with Sprit Airlines can still book flights. "The most important thing to know is that you can continue to book and fly now and in the future," the airline's statement reads.
"You can use all tickets, credits and loyalty points as normal. You can continue to benefit from our Free Spirit loyalty program, Saver$ Club perks and credit card terms.
"Our amazing Team Members are here to offer you excellent service and an elevated experience."
Will Spirit Airlines Be Laying Off Staff?
Spirit hasn't announced plans to lay off staff as part of the Chapter 11 bankruptcy process.
"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," the airline told Newsweek.
Why Has Spirit Filed for Bankruptcy?
According to the court filing, Spirit has listed its estimated assets and liabilities to be in the range of $1 billion to $10 billion. The agreement announced on Monday aims to reduce the company's debts and increase financial flexibility.
The airline has said that the process should be completed in the first quarter of 2025.
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