Spirit Airlines Issues Open Letter to All Spirit Guests
Spirit Airlines (NYSE: SAVE) has announced a significant financial restructuring initiative, including a prearranged Chapter 11 filing. The airline has reached an agreement with bondholders aimed at reducing total debt and enhancing financial flexibility. The company assures customers that operations will continue normally, with all tickets, credits, loyalty points, and Saver$ Club perks remaining valid. Spirit expects to complete the restructuring process by first quarter of 2025, emphasizing that this strategic move is designed to strengthen its position in delivering value-focused air travel services.
Spirit Airlines (NYSE: SAVE) ha annunciato un'importante iniziativa di ristrutturazione finanziaria, inclusa una richiesta di concordato di tipo Chapter 11. La compagnia aerea ha raggiunto un accordo con i titolari di obbligazioni per ridurre il debito totale e migliorare la flessibilità finanziaria. L'azienda assicura ai clienti che le operazioni continueranno normalmente, con tutti i biglietti, i crediti, i punti fedeltà e i vantaggi del Saver$ Club che rimarranno validi. Spirit prevede di completare il processo di ristrutturazione entro il primo trimestre del 2025, sottolineando che questa mossa strategica è progettata per rafforzare la propria posizione nella fornitura di servizi di viaggio aereo orientati al valore.
Spirit Airlines (NYSE: SAVE) ha anunciado una importante iniciativa de reestructuración financiera, que incluye una solicitud de Chapter 11 preestablecida. La aerolínea ha llegado a un acuerdo con los tenedores de bonos para reducir la deuda total y mejorar la flexibilidad financiera. La compañía asegura a los clientes que las operaciones continuarán con normalidad, manteniéndose válidos todos los boletos, créditos, puntos de lealtad y beneficios del Saver$ Club. Spirit espera completar el proceso de reestructuración para el primer trimestre de 2025, enfatizando que este movimiento estratégico está diseñado para fortalecer su posición en la prestación de servicios de viaje aéreo enfocados en el valor.
스피릿 항공(NYSE: SAVE)이 사전 준비된 Chapter 11 신청을 포함한 중요한 재정 구조조정 계획을 발표했습니다. 이 항공사는 채권자들과 합의에 도달하여 총 부채를 줄이고 재정 유연성을 높이는 데 목표를 두고 있습니다. 회사는 고객에게 모든 항공편, 크레딧, 포인트 및 Saver$ Club 혜택이 유효하므로 운영은 정상적으로 계속될 것이라고 보장합니다. 스피릿은 2025년 첫 분기까지 구조조정 과정을 완료할 것으로 기대하며, 이는 가치 중심의 항공 여행 서비스를 제공하는 데 있어 자사의 입지를 강화하기 위한 전략적 조치임을 강조합니다.
Spirit Airlines (NYSE: SAVE) a annoncé une importante initiative de restructuration financière, y compris un dépôt de Chapter 11 pré-arrangé. La compagnie aérienne a conclu un accord avec les détenteurs d'obligations visant à réduire la dette totale et à améliorer la flexibilité financière. La société assure à ses clients que les opérations continueront normalement, tous les billets, crédits, points de fidélité et avantages du Saver$ Club restant valides. Spirit s'attend à achever le processus de restructuration d'ici le premier trimestre 2025, soulignant que ce mouvement stratégique est conçu pour renforcer sa position dans la fourniture de services de voyage aérien axés sur la valeur.
Spirit Airlines (NYSE: SAVE) hat eine wichtige finanzielle Restrukturierungsinitiative angekündigt, einschließlich eines vorbereiteten Chapter 11-Antrags. Die Fluggesellschaft hat eine Vereinbarung mit Anleihegläubigern getroffen, die darauf abzielt, die Gesamtverschuldung zu reduzieren und die finanzielle Flexibilität zu erhöhen. Das Unternehmen versichert den Kunden, dass der Betrieb normal weitergeführt wird, alle Tickets, Guthaben, Treuepunkte und Vorteile des Saver$ Clubs weiterhin gültig sind. Spirit erwartet, den Restrukturierungsprozess bis zum ersten Quartal 2025 abzuschließen, und betont, dass dieser strategische Schritt darauf abzielt, seine Position im Bereich der wertorientierten Flugdienstleistungen zu stärken.
- Agreement with bondholders to reduce total debt
- Operations continue normally during restructuring
- All customer tickets, credits, and loyalty programs remain valid
- Company filing for Chapter 11 bankruptcy protection
- Restructuring process extends through Q1 2025
- Financial distress requiring debt restructuring
Insights
Spirit Airlines' pre-arranged Chapter 11 filing marks a significant strategic move in the airline's financial restructuring. The agreement with bondholders aims to reduce the
The pre-arranged nature of this bankruptcy suggests a more orderly process compared to traditional Chapter 11 filings, with key stakeholders already aligned. The planned completion by Q1 2025 indicates a relatively swift restructuring timeline. While operations continue normally, this development will likely impact Spirit's market position and competitive dynamics in the ultra-low-cost carrier segment.
The airline's focus on maintaining customer loyalty programs and travel credits during restructuring is important for preserving revenue streams. However, investors should monitor cash burn rates, potential aircraft lease renegotiations and the final debt reduction terms as key indicators of restructuring success.
DANIA BEACH, Fla., Nov. 18, 2024 /PRNewswire/ -- Spirit Airlines, Inc. ("Spirit" or the "Company") (NYSE: SAVE) today issued the following open letter to all Spirit Guests:
We are writing to let you know about a proactive step Spirit has taken to position the company for success. Spirit has entered into an agreement with our bondholders that is expected to reduce our total debt, provide increased financial flexibility, position Spirit for long-term success and accelerate investments providing Guests with enhanced travel experiences and greater value. Part of this financial restructuring includes filing a "prearranged" chapter 11.
The most important thing to know is that you can continue to book and fly now and in the future. We also want to assure you:
- You can use all tickets, credits and loyalty points as normal.
- You can continue to benefit from our Free Spirit loyalty program, Saver$ Club perks and credit card terms.
- Our amazing Team Members are here to offer you excellent service and an elevated experience.
We expect to complete this process in the first quarter of 2025 and emerge even better positioned to deliver the best value in the sky. Other airlines that are operating successfully today have undertaken a similar process. For more information about our financial restructuring, please visit www.SpiritGoForward.com.
We're grateful you continue to choose Spirit for your travel needs. As we head into the holiday season and beyond, we look forward to welcoming you on board again soon.
Additional Information
Additional information about the Company's chapter 11 case, including access to Court filings and other documents related to the restructuring process, is available at https://dm.epiq11.com/SpiritGoForward or by calling Spirit's restructuring information line at (888) 863-4889 (
About Spirit Airlines
Spirit Airlines (NYSE: SAVE) is a leading low-fare carrier committed to delivering the best value in the sky by offering an enhanced travel experience with flexible, affordable options. Spirit serves destinations throughout
Investor Inquiries:
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Cautionary Statement Regarding Forward Looking Statements
This press release contains various forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") which are subject to the "safe harbor" created by those sections. Forward-looking statements are based on our management's beliefs and assumptions and on information currently available to our management. All statements other than statements of historical facts are "forward-looking statements" for purposes of these provisions. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "could," "would," "expect," "plan," "anticipate," "believe," "estimate," "project," "predict," "potential," and similar expressions intended to identify forward-looking statements. Forward-looking statements include, but are not limited to, statements regarding Spirit's expectations with respect to operating in the normal course, the Chapter 11 process. Forward-looking statements are subject to risks, uncertainties and other important factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by such forward-looking statements. Factors include, among others, risks attendant to the bankruptcy process, including the Company's ability to obtain court approval from the Court with respect to motions or other requests made to the Court throughout the course of Chapter 11, including with respect the DIP; the effects of Chapter 11, including increased legal and other professional costs necessary to execute the Company's restructuring process, on the Company's liquidity (including the availability of operating capital during the pendency of Chapter 11); the effects of Chapter 11 on the interests of various constituents and financial stakeholders; the length of time that the Company will operate under Chapter 11 protection and the continued availability of operating capital during the pendency of Chapter 11; objections to the Company's restructuring process, the DIP, or other pleadings filed that could protract Chapter 11; risks associated with third-party motions in Chapter 11; Court rulings in the Chapter 11 and the outcome of Chapter 11 in general; the Company's ability to comply with the restrictions imposed by the terms and conditions of the DIP and other financing arrangements; employee attrition and the Company's ability to retain senior management and other key personnel due to the distractions and uncertainties; risks associated with the potential delisting or the suspension of trading in its common stock by the New York Stock Exchange, the impact of litigation and regulatory proceedings; and other factors discussed in the Company's Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the SEC and other factors, as described in the Company's filings with the Securities and Exchange Commission, including the detailed factors discussed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as supplemented in the Company's Quarterly Report on Form 10-Q for the fiscal quarters ended March 31, 2024 and June 30, 2024. Furthermore, such forward-looking statements speak only as of the date of this release. Except as required by law, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements. Risks or uncertainties (i) that are not currently known to us, (ii) that we currently deem to be immaterial, or (iii) that could apply to any company, could also materially adversely affect our business, financial condition, or future results. Additional information concerning certain factors is contained in the Company's Securities and Exchange Commission filings, including but not limited to the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K.
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SOURCE Spirit Airlines, Inc.
FAQ
Will Spirit Airlines (SAVE) continue operating during Chapter 11 restructuring?
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