Spirit Airlines Files for Bankruptcy

Budget airline company Spirit Airlines has filed for bankruptcy protection. The company has struggled since a failed merger with JetBlue Airways, along with an engine recall and disappointing sales. 

In a letter to customers, CEO Ted Christie said, “[w]e are writing to let you know about a proactive step Spirit has taken to position the company for success. Spirit has entered into an agreement with our bondholders that is expected to reduce our total debt, provide increased financial flexibility, position Spirit for long-term success and accelerate investments providing Guests with enhanced travel experiences and greater value. Part of this financial restructuring includes filing a ‘prearranged’ chapter 11.”

Christie assured its customers the company will continue operating, stating that “[t]he most important thing to know is that you can continue to book and fly now and in the future.”