Following a string of quarterly losses, unsuccessful merger bids, and impending debt maturities, Spirit Airlines (SAVE.N), the forerunner of low-cost flying in the US, said on Monday that it has filed for bankruptcy protection.
In order to restructure its debts and acquire funds to support its operations throughout the bankruptcy process, which it anticipates ending in the first quarter of 2025, the Florida-based airline said it has already made arrangements with its bondholders.
The airline stated that it anticipated carrying on with business as usual during the proceedings, allowing passengers to book and travel without any disruptions.
Following a string of quarterly losses, unsuccessful merger bids, and impending debt maturities, Spirit Airlines (SAVE.N), the forerunner of low-cost flying in the US, said on Monday that it has filed for bankruptcy protection.
In order to restructure its debts and acquire funds to support its operations throughout the bankruptcy process, which it anticipates ending in the first quarter of 2025, the Florida-based airline said it has already made arrangements with its bondholders.
The airline stated that it anticipated carrying on with business as usual during the proceedings, allowing passengers to book and travel without any disruptions.
In the meantime, its pricing power was weakened by fierce rivalry among US airlines for budget-conscious leisure passengers and an excess of airline seats in the domestic market. In the first half of this year, its average fare per passenger decreased 19% from the same period last year.
