The late 2024 travel news cycle was dominated by the news that Spirit Airlines (SAVE) , based in Miramar, Fla., was filing for bankruptcy.
After a federal judge blocked JetBlue Airways (JBLU) from acquiring Spirit for $3.6 billion at the end of January 2024, the low-cost carrier’s leadership spent months denying the possibility of bankruptcy. However, on November 18, 2024, the company announced that Chapter 11 protection was the only way to “provide increased financial flexibility [and] position Spirit for long-term success.” As Spirit looks for new investors, the airline is still running operations on its usual schedule.
Florida-based low-cost carrier says it will complete restructuring process in early 2025
The new year began with the announcement that another low-cost Florida airline, Silver Airways, was also filing for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Florida. The smaller regional carrier is based in the suburb of Hollywood outside Fort Lauderdale; it flies to destinations such as Key West, Tampa and Orlando in the U.S. and Nassau, St. Kitts, San Juan and Santo Domingo across the Caribbean.
The bankruptcy protection will allow Silver to continue operations per usual as it restructures up to $500 million in debts. In 2023, the airline had briefly stopped flying out of Fort Lauderdale as it faced eviction of over $1.4 million in unpaid debts for gate slots.
Related: Spirit Airlines files for Chapter 11 bankruptcy (you can still fly on it)
While it was able to make some headway on the interest and payments and restart flights, the debts continued to accrue to the point of bankruptcy protection being the last available option.
“This decision will allow us to secure additional capital and undertake a financial restructuring that will strengthen our position as a competitive airline, ultimately benefiting you — our valued customers,” Silver Airways said in a statement about the bankruptcy. “We anticipate completing this process by the first quarter of 2025, emerging stronger and ready to continue serving you with the same dedication we’ve upheld for over 13 years.”
One of Florida-based Silver Airways aircraft is shown in flight.
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Booked on Silver Airways? Here is how the bankruptcy protection affects you
Silver Airways, which was founded in 2010 with the assets of the bankrupt Gulfstream International Airlines, has yet to publish a restructuring plan. It currently has a fleet of eight ATR 42-600 and six ATR 72-600 planes as well as two De Havilland DHC-6-300 Twin Otter seaplanes.
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Given the high costs, launching a new airline is traditionally an unprofitable undertaking. While Silver would periodically land on rankings of the best and fastest-growing U.S. airlines shortly after its launch, it quickly started accruing debts of at least $2.1 million to the IRS and $1 million each in Orlando and Fort Lauderdale. American Airlines (AAL) dropped Silver as a codeshare partner in the spring of 2024 after it cut flights to South Carolina due to them being unprofitable and the situation continued to get worse amid low traffic and accruing costs.
“All tickets remain valid, and we will continue operating as usual,” Silver Airways wrote in its Dec. 30 letter to customers. “You can book flights with Silver through our website or any other channel. United (UAL) and JetBlue customers, including loyalty program members, will experience no disruptions to their bookings or services.”
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