In November, Spirit Airlines filed for Chapter 11 bankruptcy bankruptcy protection. The icon of U.S. budget air travel has not turned a profit since 2019, and it has lost more than $2 billion since 2020.
How did it get here?
The Covid-19 pandemic has been devastating to all airlines, but it was just the beginning of Spirit’s financial woes. The airline industry faces supply chain issues and rising costs, including wage increases for tens of thousands of employees. In addition, Spirit also faces Pratt & Whitney The engine recall has grounded dozens of planes, lower-than-expected sales and… JetBlue Airways.
After the epidemic, travelers’ preferences have also changed, and many consumers are willing to Make more space on board or similar benefits Stylish airport lounge”, said airline executives. Ultra-low-cost carriers face challenges from traditional airlines such as American, delta and unitedthey introduced basic economy fares and segmented cabins to cater to more price points, from low fares to first-class tickets that can reach the mid-four figures.
Faced with mounting losses and looming debt repayments, Spirit Hundreds of pilots furloughed and provide Salaried Worker Buyout. It has also sold off part of its Airbus fleet and cut routes. Ultimately, the company filed for bankruptcy protection on November 18.
Spirit Airlines says it will continue operations normal operation The company is going through bankruptcy proceedings, which it expects to exit in the first quarter of 2025.
Watch the video to learn more about the problem.
