Chattanooga is one of 11 cities where low-cost carrier Spirit Airlines plans to discontinue service as it re-enters Chapter 11 bankruptcy, according to the aviation magazine Flight Global.
Chattanooga Airport officials confirmed the city is among those on the chopping block in a statement Thursday morning. They were informed this week that service to Chattanooga and other cities will discontinue effective Oct. 4.
“While we are all disappointed with this outcome, we very much appreciated Spirit’s commitment to our market and wish them a speedy financial recovery,” CEO April Cameron stated in a statement.
The other cities affected by the decision include Albuquerque, New Mexico; Birmingham, Alabama; Boise, Idaho; Columbia, South, Carolina; Oakland, Sacramento, San Jose and San Diego, California; Portland, Oregon, and Salt Lake City, Utah, the report stated.
In June, Chattanooga leaders heralded the company’s first direct flights to Newark, New Jersey, as well as Orlando and Fort Lauderdale, Florida, with a ribbon cutting at the airport.
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Spirit was the first new airline to enter the Chattanooga market since 2016, which occurred as the airport saw passenger boardings rebound to new heights after the pandemic.
The company first filed for bankruptcy protection last year as it struggled to recover from the pandemic and stronger competition from largeger carriers, according to the Associated Press. The airline had lost more than $2.5 billion since the start of 2020.
It exited that process in March but recently filed for bankruptcy again. In a news release on Aug. 29, CEO Dave Davis stated it has become clear that there is much more work to be done since the company emerged from its previous restructuring, which was tarreceiveed on reducing the airline’s funded debt and raising equity capital.
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“As we relocate forward, guests can continue to rely on Spirit to provide high-value travel options and connect them with the people and places that matter most,” Davis stated.
The airline carries $2.4 billion in long-term debt and reported a negative cash flow of $1 billion at the finish of the second quarter, according to the Associated Press.
Chapter 11 of the United States Bankruptcy Code generally allows companies to propose a plan for reorganization to keep their businesses alive and pay creditors over time.
This is a developing story. Stay with the Times Free Press for updates.
Contact business reporter David Floyd at dfloyd@timesfreepress.com or 423-757-6249.
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