Spirit Air Files For Bankruptcy – What It Means For ACY Travelers

The news broke first thing Monday morning that Spirit Airlines had filed for Chapter 11 bankruptcy protection, according to Axios.

This news had been expected since last week when the Wall Street Journal reported that the company is preparing for bankruptcy protection after its planned merger with rival low-cost carrier Frontier Airlines broke down again.

Spirits Financail Troubles

In early 2024, Spirit Air had hoped that a $3.8 billion deal to sell itself to JetBlue would rescue the company, but a federal judge blocked the deal saying it would lead to higher prices for consumers.

Before the proposed JetBlue deal, Spirit had a round of merger talks with Frontier that didn't come to fruition.

Last week, another round of talks about merging with Frontier broke down.

Spirit has also struggled through a Pratt & Whitney engine recall and weaker-than-expected sales. The company lost money in 17 of its last 18 quarters, including about $336 million in the first half of 2024.

Spirit is the first major U.S. airline to file for Chapter 11 since American Airlines 13 years ago.

What Does This Mean For Spirit Flights From ACY?

Spirit Air, Atlantic City International Airport's primary carrier, declares bankruptcy after bleeding cash for years.

What does this mean for your discount trips to Florida?

Let's face it, people in South Jersey may complain about Spirit Airlines sometimes, but many of us enjoy the convenience and the lower price point of traveling on Spirit from Atlantic City International Airport.

The news in the short term is good.

Spirit says it is business as usual for them at ACY.

“The most important thing to know is that you can continue to book and fly now and in the future,” Spirit CEO Ted Christie said in a letter to customers on Monday. He said customers can use tickets, credits and loyalty points normally."

Christie said customers can use tickets, credits, and loyalty points normally.

The financial crunch Spirit is facing is very serious, though.

The airline has sold dozens of jets to raise cash. They hope to end the year with about $1 billion in liquidity.

There is also a plan to furlough as many as 300 pilots in January after letting 200 go in September.