The Air Line Pilots Association (ALPA) is asking Spirit Airlines’ bondholders to continue funding the carrier as it works through Chapter 11 bankruptcy for the second time in less than a year.
In a Jan 13 open letter, the union said Spirit has made progress in its restructuring but warned the airline could be forced into liquidation without continued financial support. ALPA, which represents Spirit’s pilots and other frontline employees, said thousands of jobs could be lost if funding is withdrawn.
“Bankruptcy does not equate to collapse,” the union wrote. “This process exists to allow companies to restructure their debt, stabilize operations, and emerge stronger.”
Spirit has struggled financially since the pandemic. According to MSN, the airline has lost more than $2.5 billion since 2020, failed to complete merger attempts with Frontier and JetBlue, and filed for bankruptcy twice. In an effort to conserve cash, Spirit has cut routes, reduced its fleet, furloughed pilots, and downgraded captains to lower-paying positions.
Spirit continues to operate while under bankruptcy protection as negotiations with creditors continue.
