Spirit Airlines files for bankruptcy

Spirit airlines files for bankruptcy

Spirit airlines filed for bankruptcy protection and will attempt to reboot as it struggles to recover from the pandemic-caused swoon in travel and failed attempts to sell itself to other carriers.

Spirit, the biggest U.S. budget airline, has lost more than $2.5 billion since the start of 2020 and faces looming debt payments totaling more than $1 billion over the next year, obligations it was unlikely to be able to meet. hence it filed for bankruptcy.

Spirit airlines files for bankruptcy
Spirit Airlines planes in Florida in 2020. Photograph: Chris O’Meara/AP

People are still flying on Spirit Airlines. They’re just not paying as much. In the first six months of this year, Spirit passengers flew 2% more than they did in the same period last year. However, they are paying 10% less per mile, and revenue per mile from fares is down nearly 20%, contributing to Spirit’s red ink.

It’s not a new trend. Spirit failed to return to profitability when the coronavirus pandemic eased and travel rebounded. There are several reasons behind the slump.

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