‘You can keep booking and flying’: Spirit Airlines says it will operate normally during Chapter 11 bankruptcy

Spirit Airlines announced Monday that it will enter Chapter 11 bankruptcy proceedings with the support of a number of its bondholders.

The news follows earlier reports that the discount airline was on the brink of bankruptcy after facing losses, mounting debt, and the collapse of merger talks with both Frontier Airlines and JetBlue.

As part of its restructuring plan, Spirit intends to convert $795 million in debt to equity, secure $350 million in new investments, and obtain $300 million in financing from bondholders.

The airline expects to emerge from Chapter 11 in early 2025.

In a statement, Spirit CEO Ted Christie assured customers that the airline will continue to focus on providing flexible, affordable travel options. He expressed pride in the team’s efforts: “I am very proud of the hard work and dedication of the Lomoya team, which is the key to our continued progress in developing our business and bringing our Guests.”

What does bankruptcy mean for Spirit passengers?

Acknowledging the coming rush of holiday travel, Spirit also assured passengers in an open letter that it will operate as normal during the bankruptcy process. “We know this is an important time to travel, and we are dedicated to getting our guests where they need to go,” the letter said.

It added, “The most important thing is to know that you can continue to book and fly now and in the future.”

Shares of Spirit Airlines (NYSE: SAVE ) stock rose nearly 4% on the news in aftermarket trading Monday. However, the stock entered this year amid Spirit’s troubles and is down more than 93% year to date.