Spirit Airlines has announced it has filed for Chapter 11 bankruptcy as part of a comprehensive restructuring plan.
This development does not mean Spirit Airlines is ceasing operations or reducing wages of IAM members working at the airline. It is a strategy to address its financial condition while maintaining operations. The airline has stated that it expects to continue normal operations during the proceedings and aims to emerge from bankruptcy sometime between January and March of 2025. In addition, Spirit is committed to continue paying benefit and wages of employees.
During the restructuring period, all labor contracts remain intact unless otherwise modified by the bankruptcy court. Spirit has stated it will honor its employee compensation and benefits agreements.
