Spirit Airlines, a budget air travel icon, has filed for bankruptcy protection due to mounting losses, failed merger attempts, and changing consumer preferences. The airline has secured a prearranged deal with bondholders for $300 million in financing and plans to continue operating normally during the Chapter 11 process. Struggling with engine recalls, pandemic-related costs, and failed acquisitions, Spirit is the first major U.S. airline to file for Chapter 11 since American Airlines 13 years ago. The airline’s financial challenges have led to furloughs, route cuts, and a focus on cost reduction in bankruptcy. Despite its past success with low fares and add-on fees, Spirit has faced increased competition and financial pressures in the post-pandemic travel landscape.
