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Just about every news source and blogger has chimed in this weekend around the supposed demise of Spirit Airlines that was supposed to occur yesterday. I wasn’t buying it and even purchased tickets for two flights on the low-cost carrier for this month and February. The Air Current first shared the premise that the end might be near, but I’m hopeful that Spirit will persist.
The airline has filed for bankruptcy twice within the past year while battling severe financial pressures. According to The Air Current, Spirit’s competitors had spent the weekend preparing contingency plans for an abrupt shutdown that could have occurred as early as yesterday. According to the report, several airlines were drafting supplemental flight schedules to accommodate passengers who could be stranded if Spirit ceased operations. Industry executives expressed doubt that the carrier would be able to secure the additional financing needed to remain afloat, which raised alarms ahead of one of the busiest travel periods of the year.
Despite these concerns, Spirit Airlines publicly denied that it was preparing to halt operations. On Friday, the airline issued a statement asserting that it remained fully operational and that it was “business as usual.” Saturday passed without interruption to Spirit’s schedule, yet the underlying financial concerns leave lingering uncertainty about what may come next. An emailed statement from Spirit to The Air Current reads:
There is no truth to any rumors that we are preparing to cease operations. It is business as usual at Spirit and flights continue to operate normally. We are working closely with our debtor-in-possession (DIP”) providers and other key stakeholders on a wide variety of issues to support the financial needs and future of the business, as we have been throughout our restructuring process. These ongoing discussions remain productive.”
Spirit had 2,710 flights scheduled between yesterday, December 14th and December 20th. These flights would be thrown into jeopardy if the airline were to shut down abruptly. For now, operations continue, but the heightened attention from competitors and analysts underscores how precarious the situation has become. Travelers booked in the coming weeks may find themselves watching developments closely as Spirit works to stabilize its future. The airline did get its pilots and flight attendants to ratify a contract this week while announcing that it would not be furloughing pilots next month. It has returned aircraft, sold gates to American Airlines, and is working hard to try to get its finances in order.
Anthony’s Take: I don’t believe that the end is as imminent as many are claiming. I think Spirit might shrink further, could get acquired, or might shut down in the future if all other avenues are exhausted. That said, I don’t see it happening before next year. That’s my personal opinion and I could be wrong, but my money is still on Spirit.
(Image Credits: Spirit Airlines.)
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Advertiser & Editorial Disclosure: The Bulkhead Seat earns an affiliate commission for anyone approved through the links above This compensation may impact how and where links appear on this site. We work to provide the best publicly available offers to our readers. We frequently update them, but this site does not include all available offers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed, or approved by any of these entities.
