{"id":177403,"date":"2024-11-18T17:07:29","date_gmt":"2024-11-18T17:07:29","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/11\/18\/no-frills-us-carrier-spirit-airlines-files-for-bankruptcy-protection\/"},"modified":"2024-11-18T17:07:29","modified_gmt":"2024-11-18T17:07:29","slug":"no-frills-us-carrier-spirit-airlines-files-for-bankruptcy-protection","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/11\/18\/no-frills-us-carrier-spirit-airlines-files-for-bankruptcy-protection\/","title":{"rendered":"No-frills US carrier Spirit Airlines files for bankruptcy protection"},"content":{"rendered":"
\"No-frills<\/div>


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US budget carrier Spirit Airlines has filed for bankruptcy protection after a long run of financial losses and a series of failed merger attempts. <\/p>\n

On Monday, the Florida-based airline said it had arranged an agreement to restructure its debt and raise money during a bankruptcy process that is expected to last until early 2025.<\/p>\n

During that time, Spirit’s operations will continue as normal and passengers will be unaffected, it said. <\/p>\n

Spirit, which has not recorded a full-year profit since the start of the Covid-19 pandemic, is the first US airline to file for bankruptcy in more than a decade. American Airlines declared bankruptcy in 2011 to cut labour costs during a period of high fuel prices.<\/p>\n<\/div>\n

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In a statement, Spirit said the bankruptcy process – known as Chapter 11 – will not impact employee pay or payments to aircraft leasing companies. <\/p>\n

The company will be de-listed from the New York Stock Exchange in the “near term” and stock shares will be cancelled, with no value, as part of its restructuring, Spirit said. <\/p>\n

Despite strong demand, the no-frills airline posted losses of approximately $360m (\u00a3285m) in the first half of this year. <\/p>\n

Competition in the budget travel market has been rising and Spirit has also been forced to ground aircraft as a result of mechanical issues with some engines, which drove up operating costs. <\/p>\n

Earlier this year, Spirit’s highly anticipated $3.8bn ($3bn) merger with another US carrier, JetBlue, collapsed. A Massachusetts judge blocked the deal, arguing that a merger would reduce competition in the market. <\/p>\n

Another attempt to merge, with Frontier Airlines in 2022, fell apart after Spirit was outbid by JetBlue. <\/p>\n

Originally a long-haul trucking company founded in 1964, which pivoted to aviation in the early 1980s, the firm rebranded as Spirit in 1992. It is considered a pioneer in budget flying, forgoing many amenities that are standard on other airlines in order to keep ticket prices low.<\/p>\n<\/div>\n


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US budget carrier Spirit Airlines has filed for bankruptcy protection after a long run of financial losses and a series of failed merger attempts. On Monday, the Florida-based airline said it had arranged an agreement to restructure its debt and raise money during a bankruptcy process that is expected to last until early 2025. During […]<\/p>\n","protected":false},"author":2,"featured_media":177404,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/ichef.bbci.co.uk\/news\/1024\/branded_news\/c92f\/live\/71622d40-a5c3-11ef-8886-e73d03a22613.jpg","fifu_image_alt":"","footnotes":""},"categories":[604],"tags":[2245,10161,16253,563,138847,7829,14096],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/177403"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=177403"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/177403\/revisions"}],"predecessor-version":[{"id":177405,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/177403\/revisions\/177405"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/177404"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=177403"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=177403"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=177403"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}