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The Florida-based airline announced Monday, Nov. 18, that its debt, growing losses, and increased competition have kept the company in the red for four years, and it would need to restructure its bills to keep it in the air, NBC News reported.
However, despite its financial troubles, the airline promised passengers they would not feel any of that pain in the air.
"Guests can continue to book and fly without interruption and can use all tickets, credits, and loyalty points as normal," the company said in a statement. "The Chapter 11 process itself will not impact Team Member wages or benefits, which are continuing to be paid and honored for those employed by Spirit."
Despite the company's assurances, multiple people on social media have said they would cancel their flights and book tickets with another airline to avoid any potential hassles.
USA Today reported that the bankruptcy would likely have little impact on Thanksgiving travelers, but cancellations could become an issue later in the winter, particularly near the end of the year. Anyone planning to fly Spirit should look for potential changes to their travel itinerary as the date of their trip approaches, the news report continued.
Spirit Airlines has lost more than $2.5 billion since the start of 2020 and has deferred more than $1 billion in debt payments to 2025 and 2026, according to CNN. On Monday, the company said it had secured $350 million in equity investments from bondholders.
Spirit has attempted mergers with fellow budget carriers Frontier Airlines and Jet Blue, but both of those attempts fell flat.
Airline experts told NBC that the number of people flying on Spirit Airlines has remained steady, but the company's prices haven't kept up with rising operating and labor costs.
The bankruptcy will likely reverberate across the low-budget airline market, but it's too early to know how this will impact prices for travelers, the report said.
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