Spirit Airlines exits bankruptcy protection as travel demand slows

New York (AP) – Carrier Spirit (Saveq) appeared from bankruptcy protection.

On Wednesday, the budget airline, known for its low-cost flights on a fleet of yellow aircraft-said on Wednesday that the parents, Spiral Aviationings, came out of Chapter 11 after placing it on the restructuring of the debt. Last month, the re -organization plan, which obtained the Court Greenlight last month, aims to restore the carrier to profitability and increase resources to compete with competitors.

“We feel a stronger and more focused airline,” CEO Ted Christie, who will continue to lead the soul after bankruptcy.

The restructuring deal for the soul allows the transfer of $ 795 million from its debts to royal rights. The company says it has also received an investment of $ 350 million from current investors to help in future operations.

SPIRIT applied bankruptcy in November, after years of increasing struggles and debts because it failed to rebound from the Covid-19s. The Florida Transport Company was particularly injured by the high operating expenses and the most solid competition. By the time of deposit of Chapter 11, the airline has lost more than $ 2.5 billion since the beginning of 2020.

Whether the soul will continue as an independent airline in the air, although attempts to acquire budget competitors such as Jetblue and Frontier have proven that it was unsuccessful before and during the bankruptcy process. The soul rejected a third offer from Frontier last month.

Although future integration proposals may not be completely out of the table, Spirit indicated on Wednesday that it will continue to focus its growth and offers. Christie pointed out that the airline will move forward with our strategy to redefine low travel with new high -value travel options. “

In the development of its exclusive budget roots, Spirit tries to take advantage of the growing market to get more high -end travel. Flight options are now providing cheerful prices, and high -rate tickets come with more amenities. Last year, months before it was presented to Chapter 11, Spirit decided to sell collected prices that include a larger seat, priority rise, free bags, internet service, snacks and drinks.

In a message sent to Spirit clients on Wednesday, Chrostie continued to direct these four travel options from the airline, which said, “Let you choose how you want to fly.”

On Wednesday’s advertisement also indicated plans to publicly trade stocks again, albeit immediately. SPIRIT shares previously released from Spirit Airlines Inc. When she leaves bankruptcy-but she expects to re-include newly released shares during the era of new owners, “as soon as possible in practice.”

Meanwhile-between the broader economic turmoil, prominent aircraft accidents and other uncertainty in the consumer-the main airlines issued warnings in recent days about the low demand. Transport companies such as Delta, southwest, recently reduced revenue discounts in the first quarter.