What went wrong for Spirit Airlines?

Core Insights - Spirit Airlines filed for Chapter 11 bankruptcy protection in November, marking a significant downturn for the airline which has not been profitable since 2019 and has incurred losses exceeding $2 billion since 2020 [1][3] Industry Challenges - The airline industry has been severely impacted by the Covid-19 pandemic, which was compounded by supply chain issues and rising operational costs, including increased wages for employees [1] - Changes in traveler preferences post-pandemic have led to increased competition, as consumers are now willing to pay for more comfort and amenities, prompting legacy carriers to introduce basic economy fares and segmented cabins [2] Company Actions - In response to financial difficulties, Spirit Airlines furloughed hundreds of pilots, offered buyouts to salaried workers, sold parts of its Airbus fleet, and cut routes [3] - The airline plans to continue operations during the bankruptcy process, with expectations to emerge as a smaller entity with fewer routes by the first quarter of 2025 [3]