The Factors Man founder Brian Kelly discusses how Spirit Airways’ chapter may have an effect on journey.
After submitting for chapter lower than a 12 months in the past, Spirit Airways goes by way of the identical course of once more after a failed reorganization of the struggling low cost airline, the corporate mentioned Friday.
The airline’s President and CEO, Dave Davis, wrote in an open letter to clients that the Chapter 11 restructuring course of would “ensure the long-term success of our company so we can continue to serve our Guests well into the future.”
Spirit added that “virtually every major airline has used these tools to improve their businesses and position them for long-term success.”
The airline first filed for chapter in November after two failed mergers over the earlier two years with Frontier and JetBlue.
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After submitting for chapter lower than a 12 months in the past, Spirit Airways goes by way of the identical course of once more after a failed reorganization of the struggling low cost airline, the corporate mentioned Friday. (Reuters/Mike Blake / Reuters)
Spirit, an ultra-low-cost airline, has struggled to compete with different main airways that supply numerous ranges of service and fly to extra locations.
The airline assured clients it will proceed to function usually all through the chapter course of, and passengers may use tickets, credit and loyalty factors on flights.
Ticker Safety Final Change Change % SPR SPIRIT AEROSYSTEMS 41.59 -0.21
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“Our Team Members remain focused on offering you a safe journey, with excellent service and an elevated experience,” Davis mentioned.
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The no-frills airline has been making an attempt to rebrand itself as extra premium as buyer preferences have shifted away from low-cost, however it has struggled with price range cuts and fewer demand created by uncertainty within the economic system.
Vacationers wheel baggage towards the Spirit Airways check-in desk at George Bush Intercontinental Airport in Houston. (Jason Fochtman/Houston Chronicle by way of Getty Photos / Getty Photos)
“Since emerging from our previous restructuring, which was targeted exclusively on reducing Spirit’s funded debt and raising equity capital, it has become clear that there is much more work to be done, and many more tools are available to best position Spirit for the future,” Davis mentioned earlier this month.
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A Spirit Airways business airways is proven at Las Vegas Worldwide Airport in Las Vegas, Nevada, U.S., February 8, 2024. REUTERS/Mike Blake (Reuters/Mike Blake / Reuters)
The service mentioned in a Securities and Trade Fee submitting it continues to be affected by “adverse market conditions,” together with continued weak demand for home leisure journey within the second quarter of 2025. The persisting challenges created a “challenging pricing environment,” the airline mentioned.
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The airline could do away with some planes and lower the variety of locations it flies to, The Wall Avenue Journal reported.
“This afternoon, Spirit Airlines announced a comprehensive restructuring of the airline to position the business for long-term success,” Spirit advised FOX Enterprise. “To facilitate this process, the company has filed voluntary petitions for Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York.”
Reuters contributed to this report.
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