Spirit Airlines Files for Bankruptcy — What That Means for Holiday Travel Plans

Mar. 15, 2025

Photo: Paul Hennessy/SOPA Images/LightRocket via Getty Images

Spirit Airlines has filed for chapter 11 bankruptcy just before the peak holiday travel season.

The airline confirmed the “prearranged” filing was made in the United States Bankruptcy Court for the Southern District of New York as part of a “restructuring support agreement” according to astatementreleased on Monday, Nov. 18. The news comes amid the company’s unsuccessful mergers with other carriers and growing debt.

Despite the filing, Spirit says it will continue to operate as normal throughout the holiday season and into 2025.

“Spirit expects to continue operating its business in the normal course throughout this prearranged, streamlined chapter 11 process,” the statement reads. “Guests can continue to book and fly without interruption and can use all tickets, credits and loyalty points as normal.”

The company also notes that employee wages and benefits will not be affected.

Spirit Airlines planes.Brandon Bell/Getty Images

The Dania Beach, Fla.-based airline’s latest move comes after a rocky past few years due to itsfailed mergers with Frontier Airlinesand JetBlue.

Spirit’s President and CEO Ted Christie said in a statement: “I am pleased we have reached an agreement with a supermajority of both our loyalty and convertible bondholders on a comprehensive recapitalization of the Company, which is a strong vote of confidence in Spirit and our long-term plan.”

He added, “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."

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Spirit made headlines last week whena raccoon fell out of the ceilingin its check-in area at New York’s LaGuardia airport.

source: people.com