The News

Spirit Airlines announced Monday it has filed for Chapter 11 bankruptcy protection, citing over $2.5 billion in losses since 2020 and more than $1 billion in upcoming debt payments.

The move comes as the ultra-low-cost carrier struggles to recover from pandemic-related challenges and the collapse of a proposed merger with JetBlue Airways.

Despite its financial troubles, Spirit plans to continue operating normally during the bankruptcy process. Customers can still book flights and travel without disruptions, the Miramar, Florida-based airline said.

Rising Costs and Declining Revenues

Spirit's bankruptcy filing underscores a broader struggle to regain profitability. While passenger numbers rose two percent in the first half of 2024 compared to last year, revenue per mile from fares fell nearly 20 percent, reflecting reduced ticket prices.

Compounding this, labor costs have surged, and a glut of flights has driven down leisure travel fares—Spirit's primary market.

CEO Ted Christie acknowledged the financial strain in recent earnings calls, pointing to rising costs and a shift in customer demand.

We are focused on refinancing our debt, improving our overall liquidity position, deploying our new reimagined product into the market, and growing our loyalty programs." Christie said, referring to bundled fare options that include perks including larger seats, free baggage, and in-flight amenities.

However, analysts warn Spirit's new strategy may alienate budget-conscious customers, its core audience, while failing to compete effectively with premium offerings from larger airlines.

Engine Issues and Route Cuts

In an unusual move, Spirit plans to cut its fourth-quarter schedule by nearly 20 percent compared to last year, a bid to stabilize fares. While this strategy may have benefited competitors including Frontier, JetBlue, and Southwest Airlines, analysts say the reduction highlights Spirit's ongoing difficulties in maintaining market share.

Failed Merger and Industry Trends

Spirit's financial troubles were exacerbated by the failed $3.8 billion merger with JetBlue. The deal was blocked earlier this year by the Justice Department, which argued it would harm competition and raise fares for Spirit's low-cost customers. Frontier Airlines also attempted to merge with Spirit in 2022, but was outbid by JetBlue.

Spirit's bankruptcy is the first by a major U.S. airline in over a decade, marking a dramatic turn for the once-thriving budget carrier. Unlike industry giants including Delta and United, which used bankruptcy in the 2000s to restructure successfully, Spirit now faces significant challenges in navigating fierce competition and evolving market demands.

Whether Spirit can emerge from Chapter 11 and remain a viable competitor in the crowded U.S. airline industry remains uncertain.

 The New York Giants have benched the struggling Daniel Jones and are expected to name Tommy DeVito as their new starting quarterback, sources told ESPN's Adam Schefter.

The benching of Jones starts the process of the last-place Giants moving on from the quarterback they signed to a four-year, $160 million deal less than two years ago.

DeVito will start in Jones' place beginning Sunday against the Tampa Bay Buccaneers at MetLife Stadium. The Giants (2-8), who are coming off their bye week, also have veteran Drew Lock, who has served as Jones' backup for every game this season.

The change at the quarterback position comes with seven games remaining in New York's season. Although the Giants' record and Jones' play were key factors in the move, ownership and general manager Joe Schoen also had to consider that there is a $23 million injury guarantee in his contract for 2025 that becomes fully guaranteed if he gets injured and is unable to pass a physical in the offseason.

The Giants are not the first team to sit a quarterback to protect themselves against a substantial injury guarantee. Last year alone, the Denver Broncos did the same with Russell Wilson ($37 million) and the Las Vegas Raiders with Jimmy Garoppolo ($11.25 million).

Coach Brian Daboll said after the Week 10 loss to the Carolina Panthers that the Giants would "evaluate" everything during their bye week -- a stark contrast to the previous weeks, when he immediately committed to Jones after losses. At that point, the wheels were in motion to make a quarterback change.

But there have been signs in previous weeks that the Giants would eventually head in this direction. They openly looked for a quarterback at the top of this year's draft and also pulled Jones in a 28-3 Week 7 loss to the Philadelphia Eagles four weeks ago.

DeVito won three straight games last year as a surprise starter following injuries to Jones and Tyrod Taylor. He was the third-string quarterback for every game this season behind Lock.

Jones has struggled since winning a playoff game after the 2022 season and signing his deal in March 2023, with the Giants going 3-13 in his 16 starts over the past two seasons. He has 10 touchdown passes and 13 interceptions, including two costly picks deep in Carolina territory during New York's 20-17 overtime loss in Germany.

Jones, 27, has thrown two touchdown passes and four interceptions in his past five games. He also failed to connect with open wide receivers on a flea-flicker against the Panthers, sending Daboll into a visible tizzy. He went down the sideline yelling and with his arms flailing in disgust.

The Giants, who are 32nd in the NFL in scoring at 15.6 points per game, are in line for one of the top picks in next year's draft, which presumably will go toward a quarterback.

Moving on from Jones is as big an indictment on Daboll and general manager Joe Schoen as it is on the quarterback. They signed him to the eye-opening deal with Jones coming off the best season of his career in 2022 and used the franchise tag on running back Saquon Barkley, who is now thriving with the rival Philadelphia Eagles.

Jones threw 15 touchdown passes and just six interceptions while finishing sixth in QBR during the career year in 2022. He also was close to flawless in a playoff win over the Minnesota Vikings.

But the Giants haven't been able to get Jones back to playing at that level, partly due to injuries and an inoperable offensive line last season. Jones missed games in 2023 with a neck injury and torn ACL