On Nov. 18, Spirit Airlines filed for bankruptcy protection, still struggling to recover from COVID-19. The airline began a prearranged chapter 11 process in the United States Bankruptcy Court for the Southern District of New York, filing with the U.S. Securities and Exchange Commission.

“The restructuring is expected to reduce Spirit’s debt, provide increased financial flexibility, position Spirit for long-term success and accelerate investments providing Guests with enhanced travel experiences and greater value,” the airline released in a statement.

The largest U.S. budget airline intends to operate normally during the process. Customers can still book flights and use frequent-flyer points. The process also won’t impact Team Member wages or benefits, and vendors, aircraft lessors and holders of secured aircraft indebtedness will continue to be paid in the ordinary course.

A week before filing for bankruptcy, Spirit Airlines delayed its quarter earnings report. The airline’s chapter 11 filing means the airline expects to be delisted from the New York Stock Exchange.

Earlier this month, Spirit Airlines announced plans to furlough about 330 pilots by Jan. 31, 2025, in a continuing effort to cut costs.

In the airline’s open letter to Spirit travelers, it noted, “We expect to complete this process in the first quarter of 2025 and emerge even better positioned to deliver the best value in the sky.”

In connection with the restructuring support agreement, Spirit has received backstopped commitments for a $350 million equity investment from existing bondholders and will complete a deleveraging transaction to equitize $795 million of funded debt,” the airline added.

The airline continues to struggle financially amidst its failed $3.8 billion merger with JetBlue and COVID-19. Rising labor costs also negatively affected Spirit Airlines, with other U.S. airlines offering their own budget-style tickets. Additionally, more and more customers are seeking premium travel (like priority boarding, bigger seats, free bags, WiFi, etc.), which Spirit Airlines lacks.

It’s important to note Spirit Airlines isn’t the only U.S. airline to have filed for bankruptcy. The three largest U.S. airlines, American Airlines, Delta Air Lines and United Airlines, all filed for bankruptcy at one time in the last 25 years.

What are your thoughts on this news? Have you flown Spirit Airlines before? What was your experience like? Do you plan to fly the airline in the future or would you rather opt for another airline? Tell us your thoughts. Email us at letters@globaltravelerusa.com. Please include your full name and location.