An attempt to merge with competitor Jetblue Airways failed at the beginning of the year, and the company has not been able to arrange its billion-dollar debt since then.
Spirit Airlines, the largest low-cost airline in the United States, has applied for debt restructuring as it tries to recover from the difficulties brought by the pandemic and a failed attempt to merge with Jetblue Airways.
The company plans to operate normally during the debt arrangement. Customers can still buy tickets and fly their flights.
Spirit has suffered losses of $2.5 billion since the start of 2020. Next year, it will receive debt reductions of more than a billion dollars.
of The New York Times according to Spirit has not made a profit since 2019.
In its debt restructuring application, the company says that it has an agreement to restructure the debt and finance operations during the restructuring. The company believes that it will get out of the debt arrangement in the first quarter of next year.
The documents show that Spirit has between 25,000 and 50,000 creditors. The total debt at the end of September was about nine billion dollars.
Spirit’s stripped-down business model has been the subject of jokes in the United States, but according to The New York Times, it has also helped the airline industry to reform.
AP