"The airline that painted its planes like a yellow cab?" — Internet reacts to Spirit Airlines preparing to file for bankruptcy
Spirit Airlines, once known for its no-frills, budget-friendly travel options, is facing turbulent skies as rumors circulate that it is preparing to file for bankruptcy. On November 13, 2024, news surfaced online indicating that an American ultra-low-cost airline was preparing to file for bankruptcy.
The news has sparked a range of reactions across social media, with many users comparing the airline's signature bright yellow planes to iconic yellow cabs —
"You mean the airline that painted its planes like a yellow cab?," one commented.
Many users on X expressed disbelief at the news, unable to fathom that the airline known for its low fares could be filing for bankruptcy.
Some critics pointed out that the airline's strategy of charging additional fees for services such as baggage, seat selection, and other extras may not have been enough to sustain its financial health —
"The cheapest airlines on earth is filing for bankruptcy…woof 😬," a user on X commented.
"Spirit Airlines filing for bankruptcy—turns out you can't charge fees for staying afloat. 💸✈️," another commented.
"Hmmmm maybe they can use their fleet to obtain a government contract and deport the people who are here illegally or have expiring visas or TPS," a netizen commented.
Some users on X responded humorously, likening the airline to a school bus with wings, while others expressed curiosity about what might have transpired had the airline's business model been more sustainable —
"Spirit Airlines is a school bus with wings," a netizen commented.
"I wonder what happened," another commented.
"Guess who not bailing them out ?," one more wrote on X.
While Spirit Airlines has not confirmed the rumors of a bankruptcy filing, the reaction from internet users underscores the turbulence the airline faces as it attempts to navigate this crisis.
Spirit Airlines headed for bankruptcy filing:
On November 12, 2024, The Wall Street Journal reported that Spirit Airlines was preparing to file for bankruptcy. The report indicates that the airline is engaged in "constructive discussions" with its creditors and is exploring strategic alternatives to improve its liquidity.
According to Forbes, the airline had planned to file for bankruptcy protection after its merger talks with Frontier Airlines fell through. Last month, Spirit was in early discussions with Frontier to revive a merger deal valued at around $2.9 billion.
This deal was reportedly planned as part of Spirit's Chapter 11 bankruptcy process. However, on Tuesday, The Journal stated that Frontier decided not to proceed with the deal, though the airline has yet to comment publicly on the situation.
In addition, as per Reuters, after the market closed, the company's shares dropped 39%, reaching $1.80. The stock has fallen almost 80% this year, while the S&P 500 passenger airlines index (.SPLRCALI) saw a 52% increase.
Furthermore, the reports suggest that despite strong travel demand, the airline has yet to generate profits over the past five to six quarters. Additionally, in October 2024, the airline announced plans to suspend or lay off approximately 330 pilots by January 31, 2025, as part of cost-cutting measures.
Moreover, the company will sell 23 older Airbus planes for $519 million. The money from the sale is expected to give the airline $225 million in cash next year.
According to Forbes, these circumstances happened because, in January, regulators blocked a $3.8 billion merger deal with JetBlue. A U.S. federal judge ruled in favor of the Justice Department, which had filed a lawsuit to stop the merger.
The Justice Department was concerned that the merger would reduce competition in the low-cost airline market and raise consumer prices.
Given the current situation, Spirit Airlines CEO Ted Christie still needs to comment on the news of the potential bankruptcy.