WEST PALM BEACH, Fla. — Turbulent times for budget carrier Spirit Airlines as it is seeking bankruptcy protection, just weeks before the holiday season.
The airline cited continued loss, failed mergers, and growing debt for the move.
John Bringardner is the head of Debtwire, a global financial analysis service. He said Spirit Airlines has failed to turn a profit for several years despite recent updates to its business model.
“It’s the first time that an American airline, a large one, has filed for bankruptcy since 2011,” said Bringardner. “They struggled to get out of that mindset that a lot travelers have, you take a Spirit flight, you understand why you got that cheap ticket.”
Gena Fontaine flies Spirit from time to time and agrees.
“I’ve only flown Spirit a couple of times and I’m going to say it was not a great experience,” said Fontaine. “It’s also not economical to pay all the additional money for bags.”
Experience aside, it’s the quick cheap flight that keeps her and loyal Spirit flyer, Eileen Lezcano coming back.
“The prices are right for going up to Atlantic City, New Jersey. It’s not crazy overpriced,” said Lezcano.
In just a few weeks Lezcano hopes to catch a Spirit flight back to see her grandchildren.
Bringardner said this recent filing shouldn’t damper the holiday plans.
“One benefit of being in bankruptcy is that they have the ability now to keep their operations running," he said. "They have to go to court and get a court approval but a judge will typically sign those off, especially in the early day. Going through the holidays, going through the Christmas, New Year period, I think you're fine. These are the early days of the case.”
He does however recommend proceeding with caution for future bookings.
“Are you going to want to buy a couple of flights for next summer," said Bringardner. "I would probably wait and see how this process plays out over the next month or two.”
In a message sent to Spirit customers from CEO Ted Christie, he said the company expects to complete this process in the first quarter of 2025, looking to be in a better position.
The message goes on to say:
The most important thing to know is that you can continue to book and fly now and in the future. We also want to assure you that:
· You can use all tickets, credits and loyalty points as normal.
· You can continue to benefit from our Free Spirit loyalty program, Saver$ Club perks and credit card terms.
For more information about Spirits financial restructuring, visit www.SpiritGoForward.com.
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