Spirit Airlines not considering Chapter 11 bankruptcy
12:25 pm Friday, June 07th, 2024
(Reuters) -Spirit Airlines is not considering a Chapter 11 bankruptcy and is “encouraged” by the plan it has in place after its deal with JetBlue Airways fell through, the carrier’s top boss said at the annual shareholder meet on Friday.
Shares of the ultra-low-cost carrier were down about 2% amid a decline in broader markets.
CEO Ted Christie’s remarks come as the Florida-based company continues to reel from the grounding of several of its aircraft, as well as bloated industry capacity in key markets.
Some analysts have also questioned Spirit’s ability to manage debt, which is due to mature in 2025 and 2026, as the airlines has continued to lose money despite a strong travel season.
The carrier announced plans to cut costs in April, including furloughing about 260 pilots and delaying all aircraft deliveries scheduled from the second quarter of 2025 through 2026.
Spirit is also among the carriers that have been hurt by a snag with RTX’s Pratt & Whitney Geared Turbofan (GTF) engines, which is expected to ground 40 of its aircraft this year.
Spirit on Tuesday announced that its CFO Scott Haralson would leave the airline and Brian McMenamy will act as interim CFO effective June 14.
(Reporting by Nathan Gomes in Bengaluru; Editing by Tasim Zahid)
