I fly SOUL AIR.................
Posted on 11/18/2024 8:14:37 AM PST by Red Badger
Spirit Airlines said Monday it has filed for Chapter 11 bankruptcy protection after struggling with losses, growing debt and a failed merger during the post-pandemic travel lull.
The company said in a stock market statement that it had secured a prearranged deal with bondholders that includes $300 million in financing to keep it afloat, with the business planning to end its bankruptcy in the first quarter of 2025.
Ticket sales and all other operations will continue as normal, the company said in the statement, which comes just 10 days before record numbers of travelers are expected to take to the skies over Thanksgiving.“I am pleased we have reached an agreement with a supermajority of both our loyalty and convertible bondholders on a comprehensive recapitalization of the Company, which is a strong vote of confidence in Spirit and our long-term plan,” Spirit CEO and president Ted Christie said in a statement.
“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.
The Dania Beach, Florida-based company had already deferred $1.1 billion in debt payments until next year and was last profitable in 2019.
The deal comes with a commitment of $350 million in equity investment from bondholders, which it said equates to $795 million of outstanding debt.
The company's share price fell from $3.22 to $1.15 last week after the Wall Street Journal reported it was preparing to file for bankruptcy protection, closing on $1.07 on Friday.
The company has had a tumultuous few years, with an engine recall in 2023 and a U.S. District Court judge blocking a proposed $3.8 billion merger with JetBlue in January. Spirit said last month it would cut jobs and sell 23 older planes in a bid to save $80 million.
Industry analysts said at the time that the court's decision left Spirit with few options but to face a likely restructure and bankruptcy.
aviation ping!......................
I wouldn’t book Spirit. Would you?
This would appear to be a restructuring bankruptcy, not the other kind....................
Wasn’t Jet Blue trying to buy or merge with them a few months ago?
I would not be surprised if they end up buying their planes and gates and everything else even cheaper now.
Does this mean you don’t get peanuts with your water or Coke?
Decided Spirit was probably not the airline of safety. Never flew it again even though it has very convenient flights from FLL.
I fly SOUL AIR.................
For an additional fee.
Does this mean you don’t get peanuts with your water or Coke?
Yes.
But, you still get the free brawl.
Gonna miss the brawls in the terminal during outgoing Chicago or NY flights.
There are a couple of airlines I will not fly - ever - and Spirit tops the list. Sun Coast is another one.
Seems like every time I’ve read about a fight in an airline terminal or some aberrant behavior on an airline, it’s Spirit.
Spirit Airlines is the Greyhound Bus of the skies............
I flew spirit and it was fine for what it was. You’re not paying for emirates first class, so set your expectations accordingly. If they get me from point a to point b without having to deploy the snorkels then I’m good, bonus if my luggage arrives at the same place I’m going.
Spirit is far worse than Greyhound!
My daughter took Greyhound back to college - seven hours - each bus had recently undergone a $200,000 upgrade - she said the seats were great, they had really good internet service and it was very comfortable and clean - dropped them off right at the BART station.
I’d rather her take that than Spirit airlines.
Thanks for the good news.
And not a day too soon.
They were probably trying to find a way to monetize the filing. They charge for everything else.
I call them “Ghetto Airlines”.
Exactly. Who needs to watch Mike Tyson, when there’s Spirit Airlines?
If they get me from point a to point b without having to deploy the snorkels then I’m good, bonus if my luggage arrives at the same place I’m going.
MADtv - Lowered Expectations: Antonia
You made me think..............................
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