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Spirit Air Files Bankruptcy, Bondholders Set to Take Control

  • Discount carrier has seen rivals lure some travelers away
  • Spirit struggled after earlier JetBlue merger was blocked
Spirit Airlines Files for Bankruptcy, Bondholders to Take Over
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Spirit Airlines Inc. filed for bankruptcy on Monday with a plan to hand over control to bondholders after failing to agree on a merger with rivals.

The airline sought Chapter 11 protection in New York to restructure $1.6 billion of debt, according to court filings. It said will continue to operate normally throughout the bankruptcy process, which should complete in the first quarter of 2025.