Spirit Airlines Files for Bankruptcy

Spirit Airlines, whose approach to selling cheap tickets without amenities earned it fans and detractors, filed for bankruptcy protection on Monday after a string of setbacks, most recently a failure to renegotiate its looming debt.

The airline, whose last annual profit was in 2019, has had trouble finding its footing after a federal judge blocked a planned merger with JetBlue Airways in January. Spirit has also struggled to capitalize on the recovery from the pandemic because of intense competition, engine problems and other factors.

The company filed for Chapter 11 bankruptcy protection in New York. It also announced an agreement with bondholders to restructure its debts and raise money to help it operate during the bankruptcy process, which it expected to exit in the first quarter of next year.

The company published an open letter to customers noting that fliers could “use all tickets, credits and loyalty points as normal.”

Ted Christie, Spirit’s chief executive, said in a statement that the arrangements announced on Monday represented a “a strong vote of confidence in Spirit and our long-term plan.”

The airline said in a court filing that it had 25,000 to 50,000 creditors, and total debt of about $9 billion at end of September.