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How Will It Affect Your Travel Plans? • Hollywood Unlocked

rmtsa by rmtsa
November 18, 2024
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How Will It Affect Your Travel Plans? • Hollywood Unlocked
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Welp, Spirit Airlines has officially thrown in the towel and filed for Chapter 11 bankruptcy protection, as many had anticipated. This move went down this Monday, marking a significant moment for the low-cost carrier that’s been dealing with mounting losses, an ever-growing pile of debt, and a failed merger attempt that left them scrambling for stability.

In the court filing, Spirit laid it all out on the table, stating that their estimated assets and liabilities fall somewhere between $1 billion and $10 billion each. That’s a hefty range that signals just how deep they’re in it. But they’ve struck a deal with their bondholders aimed at reducing their total debt and giving them some breathing room to maneuver financially.

So, what does this mean for the average traveler? In a statement Spirit reassured everyone that ticket sales and all other operations will continue as usual. The flights will keep flying, and your travel plans won’t be derailed by this bankruptcy filing.

RELATED:OMG: Spirit Airlines Flight to Haiti Diverted After Being Reportedly Hit By Gunfire

RELATED:JetBlue Airways Announces It Is Pulling Out Of Its Deal To Purchase Spirit Airlines

Spirit CEO and president Ted Christie also said, “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.”

Christie also emphasized, “The most important thing to know is that you can continue to book and fly now and in the future.” So, if you’re looking to snag a ticket for that upcoming trip, go ahead. Spirit is still in the game.

The past few years have been a wild ride for Spirit. They faced a significant setback earlier this year due to an engine recall that shook things up in 2023. Not to mention, they had their merger dreams dashed when a U.S. District Court judge blocked a proposed $3.8 billion deal with JetBlue back in January. As if that wasn’t enough, the airline recently announced job cuts and the sale of 23 older planes in an effort to save around $80 million.

It’s been a turbulent journey of challenges, and now, with this bankruptcy filing, it seems like they’re gearing up for a reset to hopefully turn things around.

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