Spirit Airlines, a leading U.S. ultra-low-cost carrier, has filed for Chapter 11 bankruptcy amid severe financial challenges. The airline has been struggling with mounting debt, reporting losses since 2020, and an inability to meet upcoming bond repayment deadlines. Recent merger talks with Frontier Airlines failed, leaving Spirit without a strategic partner to stabilize its operations.
Source:- bbc news
Despite the bankruptcy filing, Spirit Airlines will continue operating flights as it restructures. The company has secured $300 million in financing from existing bondholders to maintain operations during the bankruptcy process. Ticket sales, travel plans, and loyalty programs remain unaffected for customers.
Source:- bbc news
This move is aimed at allowing Spirit to negotiate better terms with creditors and restructure its business for long-term survival. Challenges such as rising operational costs, maintenance issues with its fleet, and increased competition have added to the financial strain
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