Spirit Airlines Files for Bankruptcy

Spirit Airlines filed for bankruptcy on Monday, and it was unclear whether the discount flier would be able to survive the debt restructuring. What to know:

• No changes: Those who have tickets or were looking to buy tickets are fine. "Guests can continue to book and fly without interruption and can use all tickets, credits and loyalty points as normal," says the airline in a statement.
• Factors: Strong competition from bigger airlines offering discounts; a glut of flights from rivals to "leisure" destinations—the keystone to Spirit's business; engine trouble that has grounded planes; and rising labor costs contributed to the Chapter 11 filing, reports the Wall Street Journal. The airline has lost more than $2.5 billion since 2020, notes the AP.

• Failed mergers: Earlier this year, a federal judge blocked a merger with JetBlue, and that was after an earlier merger with Frontier fell through.
• Context: CNN notes that American, United, and Delta airlines have filed for bankruptcy at one point over the last 25 years, only to emerge stronger. The smaller Spirit could do the same, but it also may be bought by a rival or forced to liquidate. Its stock is down a staggering 97% since late 2018, notes the AP.

(More Spirit Airlines stories.)