On Nov. 18, Spirit Airlines filed for Chapter 11 bankruptcy, becoming the first major U.S. airline to file for this form of bankruptcy since 2011. Spirit has dealt with years of financial struggles and a failed merger with JetBlue. Spirit said it will still honor tickets, airline credits, and loyalty points and plan to keep operating through the foreseeable future. This guarantee is critical during this time of year, as many people have planned cheaper trips for the holiday season.
Spirit Airlines is known for its low-cost flight options, often around 61% lower than the U.S. average. Many investors and customers predicted this bankruptcy announcement because Spirit has not reported its annual profit since 2019. Additionally, Spirit faced losses of over $360 million just in the first half of 2024, nearly four times its losses during that same period of 2023. Stock shares in Spirit dropped 59% on Nov. 18, immediately after the bankruptcy was announced.
