Spirit Airlines, a prominent ultra-low-cost carrier in the United States, has announced that it still expects shareholders will be wiped out as the airline progresses with its restructuring deal. The plan includes transferring control of the airline to its bondholders, marking a significant shift in its ownership structure.
Breeze Airways (US) CEO David Neeleman has forecasted significant changes in the airline industry, predicting further consolidation in 2025 and beyond. Neeleman noted the likelihood of bankruptcy filings and even potential mergersoccurring within the next year as airlines face mounting financial and operational pressures.
Fitch Ratings (US) has announced that the Chapter 11 bankruptcy filing of Spirit Airlines (US) will not have a material impact on Aircraft Lease ABS (Asset-Backed Securities). The credit rating agency attributes this stability to the limited exposure of ABS pools to aircraft leased by Spirit Airlines.
Nordica, Estonia’s national airline, has announced its decision to close operations and file for bankruptcy. The move follows the withdrawal of potential investor Lars Thuesen from a critical funding deal. This marks a significant setback for the carrier, which had been seeking financial support to sustain its operations.
Spirit Airlines, a prominent U.S.-based low-cost carrier, has been downgraded by S&P Global from ‘CCC’ to ‘D’following its Chapter 11 bankruptcy filing. The move reflects the airline’s financial struggles and the significant challenges it faces during its restructuring process. Additionally, the ratings on Spirit Airlines’ Enhanced Equipment Trust Certificates (EETCs) have been lowered by one notch.
Spirit Airlines is reportedly preparing to file for bankruptcy protection within the coming weeks following the breakdown of merger negotiations with Frontier Airlines. The airline is engaged in advanced discussions with bondholders to develop a bankruptcy plan expected to gain majority support from creditors. This decision underscores Spirit’s need for financial restructuring as it faces operational and market challenges, heightened by…
