Spirit Airlines, known for its bright yellow planes and low prices, has filed for bankruptcy. The airline made the announcement on Monday, saying it will restructure its debt but continue to operate as usual.
“You can still book flights and travel now and in the future,” Spirit assured customers in a letter.
This is the first major U.S. airline to file for bankruptcy since 2011. Spirit has been losing money for years and hasn’t made a yearly profit since 2019.
The JetBlue Merger That Never Happened
Spirit tried to merge with JetBlue in a $3.8 billion deal. But in January, a federal judge blocked it, saying it would hurt competition and lead to higher prices for travelers.
Since then, Spirit has been cutting costs. It sold planes, delayed new deliveries, and announced pilot layoffs.
Timeline of Spirit’s Struggles
- 2022: Spirit announced a merger with Frontier Airlines, but JetBlue made a higher offer.
- July 2022: Spirit accepted JetBlue’s bid after months of back-and-forth.
- March 2023: The government sued to block the JetBlue deal, saying it was bad for customers.
- January 2024: A judge blocked the merger.
- March 2024: The merger was officially canceled.
What’s Next?
Spirit says it hopes to finish restructuring by early 2025. “We’ll come out of this stronger and ready to deliver great value,” the airline said.
For now, flights are running as usual, but Spirit’s future is unclear. Many are watching to see what happens next.
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