NEWS: A Popular Budget Airline Has Filed for Bankruptcy Protection

If you’re planning your next vacation, you might be trying to decide which airline to use.

Orlando International Airport

There are so many options out there these days, from budget airlines to more luxury offerings, and they all come with different amenities, rules, and flight times. If you’re looking to fly on the cheap, one of the most popular choices is Spirit Airlines…but now they’ve run into some problems.

According to CNBC, Spirit Airlines has filed for bankruptcy protection after “years of mounting losses, a failed merger, and more demanding consumer tastes.” Spirit announced early Monday that it had reached a prearranged deal with its bondholders that includes $300 million in debtor-in-possession financing to help the company through the bankruptcy.

Spirit Airlines at Orlando Airport

Spirit expects to exit the bankruptcy in the first quarter of next year, saying that vendors and aircraft lessors will not be impaired. In a court filing, the company has listed its assets and liabilities between $1 billion and $10 billion. Currently, Spirit Airlines plans to continue operating, and customers can continue to book tickets.

©Spirit

“The most important thing to know is that you can continue to book and fly now and in the future,” Spirit CEO Ted Christie said in a letter to customers on Monday. Tickets, credits, and loyalty points can be used as normal right now, even though Spirit will be delisted from the New York Stock Exchange as a result of the filing.

©Spirit Airlines

In recent times, Spirit has struggled with an engine recall that grounded dozens of jets, higher costs after the pandemic, and a failed acquisition of JetBlue Airways. Shares of Spirit Airlines have fallen more than 90% this year.