Florida – Spirit Airlines requested Chapter 11 bankruptcy protection Monday morning after months of uncertainty about its future as proposed mergers with JetBlue and Frontier fell through.

The airline has already announced it will sell some planes and cut staff to save money amid restructuring. It also reportedly secured millions in funding. It was expected to be delisted from the New York Stock Exchange amid restructuring.

If you have a Spirit flight before the holidays or want to book a flight, here’s what travelers need to know:

What is Chapter 11 bankruptcy?

Chapter 11 bankruptcy protection is sometimes known as “reorganization” bankruptcy and allows a corporation or partnership to propose a plan of reorganization to put the business on a better financial footing and pay its creditors.

Here’s how USCourts.gov describes it: “A case filed under Chapter 11 of the United States Bankruptcy Code is often referred to as a ‘reorganization’ bankruptcy. Usually, the debtor remains “in possession”, has the powers and duties of an administrator, can continue to carry on business and can, with the court’s approval, borrow new money. A reorganization plan is proposed, creditors whose rights are affected can vote on the plan, and the plan can be confirmed by the court if it gets the necessary votes and meets certain legal requirements.”

Spirit Airlines going out of business?

Not at this moment, no. Ch. 11 allows Spirit Airlines to reorganize its businesses, list its debts and hopefully pay its creditors overtime.

“I am pleased to have reached agreement with a supermajority of both our loyalty and convertible bondholders on a comprehensive recapitalization of the Company, which represents a strong vote of confidence in Spirit and our long-term plan long,” said Spirit President Ted Christie. and executive director. “This set of transactions will significantly strengthen our balance sheet and position Spirit for the future as we continue to execute on our strategic initiatives to transform our guest experience by providing new, enhanced travel options, greater value and increased flexibility. I am extremely proud of the Spirit team’s work and dedication, which are key to our sustained progress in growing our business and delivering for our guests.”

I have a ticket booked on Spirit, can I still use it? Can I still book flights on Spirit? Will my flight be cancelled?

Spirit Airlines said it expects its business to continue operating as normal as it navigates the legal process. People will still be able to fly Spirit, book future flights and use their loyalty points.

“Guests can continue to book and fly without interruption and use all tickets, credits and loyalty points as normal,” Spirit said.

“Spirit expects to continue business as usual during this pre-arranged and streamlined Chapter 11 process. Guests can continue to book and fly without interruption and use all tickets, credits and loyalty points as normal. The Chapter 11 process itself will not impact team member wages or benefits, which continue to be paid and honored for those employed by Suppliers, aircraft lessors and holders of Aircraft Secured Debt will continue to be paid in the normal course and will not be affected.”

Flights, as with any airline, can be delayed or canceled for many reasons, including weather, mechanical problems, etc. Click here to check your Spirit flight status.

When will the bankruptcy file be finalized?

In an email to Spirit customers, Ted Christie, president and CEO, said he expects the process to be completed in the first quarter of 2025.

Following the announcement, Spirit Airlines shares have fallen since news of possible bankruptcy reports emerged last week.