Spirit Airlines Files Bankruptcy But “Guests can continue to book and fly without interruption”

Spirit Airlines filed for bankruptcy protection Monday, as mounting losses, unaffordable debt, increased competition for bargain-seeking airline passengers and the inability to merge with other airlines left it little choice. The airline said it will continue to operate as it restructures its debt.

“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.” it said in a statement.

Airlines and other companies in the United States frequently file for bankruptcy and emerge stronger on the other side of the process. Most major US airlines, including the three largest — American Airlines, United and Delta — have filed for bankruptcy at some point in the past 25 years. In recent years Spirit has attempted two mergers, one with fellow bargain carrier Frontier Airlines and once with JetBlue Airways, which topped the offer from Frontier only to have its purchase blocked by a federal judge on antitrust grounds.

Source: CNN