Spirit Airlines, the largest U.S. budget carrier, announced its bankruptcy filing today after prolonged losses, failed merger attempts, and mounting debt.
Despite strong travel demand, the airline, known for its bright yellow livery, faced rising operating costs, straining its budget-friendly model.
“Guests can continue to book and fly without interruption and can use all tickets, credits and loyalty points as normal,” it said in a statement.
Spirit’s shares have plummeted by more than 90 percent this year and were halted for trading on Monday.
The company has filed for Chapter 11 bankruptcy protection, reporting estimated assets and liabilities each between $1 billion and $10 billion. Spirit has secured a $350 million equity investment and $300 million in debtor-in-possession financing from existing bondholders, aiming to reduce debt and enhance financial flexibility during the restructuring process….