BusinessWhat Spirit Airlines' Bankruptcy Means for You (and Your Holiday Travel Plans)What's going on: Remember that raccoon that fell from the ceiling at a Spirit Airlines gate? Looks like he might’ve been an omen. Yesterday, the budget airline filed for bankruptcy. The move follows years of turbulence, including engine issues, post-pandemic recovery struggles, mounting debt, and a failed merger with JetBlue, which a federal judge blocked. The company has lost more than $2.2 billion since 2020, and analysts warn it faces $1 billion in debt due next year. Despite the filing, Spirit says it will keep flying, pay employees and vendors, and has assured customers in an open letter that tickets, credits, and loyalty points remain valid — for now. What it means: Spirit is known for its cheap airfare sans amenities — it’s the kind of place where free plane pretzels go to die, and checking a carry-on might cost more than your ticket. But it (usually) gets people from point A to point B, and its low prices reshaped the travel industry by making flying more accessible. However, the bankruptcy — the first by a major airline in over a decade — has critics wondering if catering to low-budget travelers is a good business model, or if other airlines could face similar headwinds. That said, Chapter 11 bankruptcy is not a death sentence — some companies emerge financially healthier and recover. As for Spirit, the airline’s fate remains up in the air. Related: Here’s How to Avoid Travel Nightmares This Holiday Season (Time) |