Discount carrier Spirit Airlines filed for Chapter 11 bankruptcy protection Monday, after racking up debt and struggling to find options to recover.
Another discount carrier, Frontier Airlines, had planned to merge with Spirit in 2022 but was outbid by JetBlue. The Spirit-JetBlue merger was then blocked by a federal judge.
The possibility of a bankruptcy filing by Spirit was expected in recent days, especially when Spirit delayed the release of its quarterly financial results last week amid debt restructuring talks.
Here’s what Spirit’s Chapter 11 filing means for Atlanta travelers:
Q: Will my flights be canceled and will I lose my frequent flyer points?
A: Spirit plans to continue operating while it restructures under bankruptcy protection.
The airline said its customers “can continue to book and fly without interruption and can use all tickets, credits and loyalty points as normal.”
Q: How large is Spirit in Atlanta?
A: Spirit has sought to expand in Atlanta in recent years, though it is still a relatively small carrier at Hartsfield-Jackson International Airport.
Spirit made up about 2.4% of the passenger traffic at the Atlanta airport in September, Hartsfield-Jackson’s most recent monthly traffic figure.
That puts it well behind Delta Air Lines, which has nearly 80% market share. Southwest Airlines has about 6.3% of the Atlanta market and Frontier Airlines has about 3.6%.
Q: Where does Spirit fly from Atlanta?
A: Spirit has flights from Atlanta to Boston; Baltimore-Washington International; Dallas-Fort Worth; Detroit; Newark, New Jersey; Fort Lauderdale, Florida; Houston; Las Vegas; Los Angeles; New York; Orlando, Florida; Minneapolis; New Orleans; Philadelphia; Tampa, Florida; and San Juan, Puerto Rico, according to Cirium flight data.
Q: How will employees be affected?
A: Spirit said the Chapter 11 process itself will not affect employee wages or benefits, which it said it continues to pay.
In 2022, the airline opened a crew base in Atlanta, adding more than 100 pilots and 200 flight attendants based at Hartsfield-Jackson.
However, Spirit last month announced plans for about $80 million of cost-cutting measures to begin early next year, driven primarily by a “reduction in workforce.”
It’s typical for companies in Chapter 11 bankruptcy to slash costs. That can also affect jobs and pay. It’s yet to be seen what that could mean for Spirit.
Q: How long will the Spirit’s Chapter 11 bankruptcy restructuring take?
A: Spirit said it filed a “prearranged” Chapter 11 and expects to complete the process in the first quarter of 2025.
However, companies sometimes encounter unexpected circumstances under Chapter 11 that can delay their restructuring.
Spirit said it plans to “emerge even better positioned to deliver the best value in the sky.”
Q: What other airlines have filed for Chapter 11 bankruptcy?
A: Many airlines have been in Chapter 11 bankruptcy in the past, including Atlanta-based Delta Air Lines from 2005 to 2007, as well as United Airlines and American Airlines.
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