‘You can continue to book and fly’: Spirit Airlines says it will operate normally during Chapter 11 bankruptcy

Spirit Airlines announced Monday that it will enter prearranged Chapter 11 bankruptcy proceedings with backing from a supermajority of its bondholders.

The news follows earlier reports that the discount airline was on the brink of bankruptcy after facing losses, mounting debt, and the collapse of merger talks with both Frontier Airlines and JetBlue.

As part of its restructuring plan, Spirit intends to convert $795 million of debt into equity, secure $350 million in new investments, and obtain $300 million in financing from bondholders.

The airline expects to emerge from Chapter 11 in early 2025.

In a statement, Spirit CEO Ted Christie reassured customers that the airline will continue to focus on providing flexible, affordable travel options. He expressed pride in the team’s efforts: “I’m extremely proud of the Spirit team’s hard work and dedication, which is key to our sustained progress in advancing our business and delivering for our Guests.”

What does the bankruptcy mean for Spirit passengers?

Acknowledging the upcoming holiday travel rush, Spirit also reassured passengers in an open letter that it would operate as normal during the bankruptcy process. “We know this is an important time for travel, and we’re dedicated to getting our Guests where they need to go,” the letter states.

It added, “The most important thing to know is that you can continue to book and fly now and in the future.”

Shares of Spirit Airlines stock (NYSE: SAVE) were up almost 4% on the news in premarket trading on Monday. However, the stock cratered this year during Spirit’s mounting troubles and is down more than 93% year to date.