Spirit Airlines Officially Files For Bankruptcy

After struggling for years in the wake of the COVID-19 pandemic, Spirit Airlines has finally filed for bankruptcy.

The news should not surprise those who have been following the airline’s plight, as the writing was on the wall when the Department of Justice blocked the carrier’s proposed merger with JetBlue.

While the future continues to look bleak for the budget airline, CEO Ted Christie asserted that customers can still book trips and fly through the skies on Spirit.

CNN

“The most important thing to know is that you can continue to book and fly now and in the future,” Christie said in a letter to customers on Monday.

The Plight of Spirit Airlines

As previously noted, Spirit Airlines has struggled in the wake of the COVID-19 pandemic. According to CNBC, The airline has not made a profit since 2019 and lost more than $335 million in the first half of 2024.

Last quarter, the airline’s operating margins were 12 points lower in 2023, coming in at -27%. Sales also fell $61 million.

Photo: CNBC

In an ever-changing travel environment, Spirit’s business model of offering low fares but charging fees for even the smallest perks finally failed. As the airline continued to descend into the red, they made numerous changes. These included laying off hundreds of employees, selling aircraft, and offering new bundles with more perks.

Ultimately, however, bankruptcy was the only option left.

Photo: Spirit

While the airline is seemingly determined to fly through the storm, without a merger or a miracle, it is difficult to see how it will survive.