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Spirit Airlines has filed for Chapter 11 bankruptcy protection, marking the first major U.S. airline to do so since 2011. Despite the filing, Spirit plans to continue operating its flights and paying its staff as usual during the bankruptcy proceedings.
The airline's move follows a precedent set by other major U.S. carriers like American, Delta, and United, which have all filed for bankruptcy in the past two decades but continued operations largely unaffected. American Airlines, for instance, filed for Chapter 11 in 2011 and emerged from it in 2013 after merging with US Airways.
While Spirit does not anticipate immediate flight or route cancellations due to the bankruptcy, it is looking to overhaul its business model for profitability. This process was already underway before the filing and may lead to incremental changes over time.
