Spirit Airlines files for bankruptcy

Spirit Airlines filed for bankruptcy this Monday. This was announced by the airline itself in a press release, in which it assured that its customers will be able to "continue to book and fly without interruption and use all tickets, credits and loyalty points as normal."

The U.S. carrier is known for offering low-cost flights throughout the United States, Latin America and the Caribbean. Since 2019 it has not closed out a year in profit. The pandemic, the inability to renegotiate its debt and a frustrated merger with JetBlue Airways contributed to its red numbers.

In the same statement, Spirit also reported that it had reached an agreement with most of its bondholders to restructure its debts and raise money to face the coming months.

In January, a federal judge blocked JetBlue's $3.8 billion acquisition of Spirit. The Department of Justice, along with seven attorneys general, took the deal to court claiming it would reduce competition, eliminate consumer choice and raise the price. Experts speculate that a Trump Administration could open the door to a new sale process.

Other problems facing the company include the industry's adjustment to its low prices, with most companies now offering cheaper packages, and problems with its aircraft engines that forced some of its fleet to stay grounded.