Spirit Airlines filed for Chapter 11 bankruptcy protection on Monday.
“The restructuring is expected to reduce Spirit's debt, provide increased financial flexibility, position Spirit for long-term success and accelerate investments providing Guests with enhanced travel experiences and greater value,” officials with the airline wrote in a press release.
Despite filing for bankruptcy protection, airline officials said that guests can “continue to book and fly without interruption.”
Ted Christie, Spirit's President and Chief Executive Officer, said he was happy an agreement was reached.
"This set of transactions will materially strengthen our balance sheet and position Spirit for the future while we continue executing on our strategic initiatives to transform our Guest experience, providing new enhanced travel options, greater value and increased flexibility,” he said in the press release. “ 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."
Joe Brancatelli from joesentme.com told L.A.’s Morning News there was another issue that led to Spirit to file for bankruptcy.
“The model that they pursue became unpopular after the pandemic, people wanted a little more, they didn't want, ‘Oh my God, I got suckered in by the cheap fare and then I had to pay for seat assignment, pay to board, pay for baggage,’” he said.
He added that are Southwest JetBlue having those similar issues and are making changes.
KNX News’ Jon Baird spoke with Spirit passengers at LAX on Monday about the company filing for bankruptcy protection.
Companies file bankruptcy all the time,” one man said.” it's just a protection during a bad time. I’m not worried.”
One couple heading to Ohio said they would have preferred to hear the news after their flight.
Want to get caught up on what's happening in SoCal every weekday afternoon? Click to follow The L.A. Local wherever you get podcasts.
“[I’m] pretty concerned if they're starting to go bankrupt,” the husband said.
“Well, we got to get home so we're going to have to proceed as usual,” the wife said.
Baird reported that the vast majority of customers said Spirit was the cheapest way to fly.
“Us broke guys need some cheap flights so we'll take it,” a passenger said.
Spirit officials also said that the process will not impact its employees' wages or benefits.
Follow KNX News 97.1 FM
Twitter | Facebook | Instagram | TikTok
