Spirit Airlines is to file for Chapter 11 bankruptcy protection today amidst ongoing financial difficulties, high operating costs, and the collapse of its merger with JetBlue.
The airline’s estimated assets and liabilities each range from $1 billion to $10 billion, while they have secured $350 million in equity investment and $300 million in debtor-in-possession financing.
Despite these challenges, Spirit plans to continue flight operations without interruption during the bankruptcy process and expects to emerge by the first quarter of 2025.
Last week, Fitch downgraded Spirit’s credit rating further into junk territory, citing probabilities of a near term default.
