(National) Spirit Airlines has filed for bankruptcy protection in a recent attempt to reboot their business. The airline has struggled to recover from the monetary hole left behind from the pandemic, and has failed to sell the airline to JetBlue.
Spirit filed fro Chapter 11 bankruptcy this year, and has lost more than $2.5 billion since 2020.
The airline has reassured its customers that they are still able to use frequent flyer points, and that business will be conducted as usual through the bankruptcy process.
According to AP News, “In the first six months of this year, Spirit passengers flew 2% more than they did in the same period last year. However, they are paying 10% less per mile, and revenue per mile from fares is down nearly 20%, contributing to Spirit’s red ink. In a highly unusual move, Spirit plans to cut its October-through-December schedule by nearly 20%, compared with the same period last year, which analysts said should help prop up fares. But that will help rivals more than it will boost Spirit. Analysts from Deutsche Bank and Raymond James say that Frontier, JetBlue and Southwest would benefit the most because of their overlap with Spirit on many routes.”
The last bankruptcy by a major U.S. carrier ended when American Airlines emerged from Chapter 11 protection and simultaneously merged with US Airways in December 2013.
