Spirit Airlines (SAVE.US) has filed for bankruptcy protection after years of losses.

Budget airline Spirit Airlines (SAVE.US) has applied for bankruptcy protection after years of losses. The company has initiated a voluntary bankruptcy process, with the majority of bondholders already signing a debt restructuring agreement. Spirit Airlines has received commitments of support for $3.5 billion in equity investment and $3 billion in debtor-in-possession (DIP) financing arrangement from existing bondholders. As part of this arrangement, Spirit Airlines will complete a deleveraging transaction to securitize $7.95 billion in financing debt. The DIP financing, along with existing cash reserves and operations, is expected to support Spirit in continuing operations through the Chapter 11 process. Spirit anticipates business as usual. The airline expects to complete the Chapter 11 bankruptcy process in the first quarter of 2025. Currently, the company is expected to be delisted from the New York Stock Exchange in the near future. As part of the Spirit reorganization, these stocks are expected to be canceled, with no value attached. Spirit Airlines' own troubles include engine recalls leading to flight cancellations, rising costs post-pandemic, and a failed merger with JetBlue Airways Corporation (JBLU.US) due to antitrust issues. Since early 2024, Spirit Airlines' stock price has dropped nearly 94%. In pre-market trading on Monday, Spirit Airlines rose 2.78% to $1.11.