JOBS LOST! Within 1 Month, Spirit and GO Airlines Files for CHA11 Bankruptcy Protection?

This does mean jobs lost, restructure or even out of business! There will be layoffs! Hate the budget airlines all you want, they still provide a means for MANY to travel affordably!

Spirit Airlines, the largest budget carrier in the U.S., filed for Chapter 11!! 11/18/2024! The filing followed years of struggles for the Florida-based airline, which is known for its no-frills, low-cost flights. Spirit failed to bounce back from the COVID-19 pandemic, largely due to rising operating expenses and stiffer competition. The airline has lost more than $2.5 billion since the beginning of 2020 while also racking up debt!

Image SpiritAirlines.com 2024

NO GOL Files within the U.S.?

Brazilian airline Gol Linhas Aéreas filed for Chapter 11 bankruptcy protection in the United States on January 25, 2024, amid mounting debt and operational challenges. The airline, heavily impacted by the COVID-19 pandemic and delays in Boeing aircraft deliveries, reported a gross debt of 20 billion reais ($4.07 billion) at the end of the third quarter. The bankruptcy filing aims to restructure its finances, supported by $950 million in financing from bondholders in its holding company, Abra Group.

Gol’s CEO, Celso Ferrer, described the move as necessary to secure a sustainable capital structure while maintaining operations without reductions. Despite strong demand for air travel in Brazil, high leasing costs, interest expenses, and supply chain issues have strained the airline’s cash flow and debt profile. The announcement follows similar bankruptcy filings by Latin American carriers such as Avianca, Aeromexico, and LATAM Airlines, which successfully reorganized after the pandemic.

Gol’s shares fell 3.2% following the announcement, extending a 15% decline since earlier reports of potential bankruptcy. Analysts noted the filing was anticipated due to challenges in reaching agreements with creditors. Ferrer expressed confidence that Gol’s restructuring process would be faster than those of its peers. The company plans to use the process to address debt pressures and resolve capacity issues caused by delayed aircraft deliveries and engine supply challenges.