Spirit Airlines Is Launching Its First-Ever Flights To Belize From Fort Lauderdale

Ambergris Caye. Cayo. Cockscomb. Pupusas. Hol Chan. Blancaneaux. Placencia. Belize is as diverse a place as you’ll find in the Caribbean. From the jungle to the beach, the Blue Hole to the jaguar preserve, it’s a tapestry of rich, authentic experiences.

There’s a reason, after all, why it’s been one of the most popular destinations in the Caribbean in recent years — and the fastest growing.

Now it’s getting easier to reach, with plans for a new flight from Fort Lauderdale to Belize stating in November.

Fort-Lauderdale-Belize City Flights

The new nonstop service from Fort Lauderdale to Belize kicks off Nov. 21. Flights will be running three times per week, Spirit confirmed. It’s the first time Spirit has ever flown to Belize. That means roundtrip frequencies on Mondays, Fridays and Saturdays. If you haven’t been to Belize, one thing to keep in mind that is if you’re going to its popular corner called Ambergris Caye, you’ll need to book a second flight on a carrier like Tropic Air from Belize City’s airport.

The Growth of Lauderdale

The expansion only underscores Fort Lauderdale’s growing position as a major source city for Caribbean travel, with South Florida more broadly one of the most important markets for tourism to the region.

Belize’s Airlift Expansion

Thanks to its strong tourism numbers, the country has been getting a wave of new air routes from the United States. This winter, Delta is doubling its holiday service from Atlanta to Belize, and United added its first-ever flights from San Francisco to Belize in March, among others.

What the New Belize Flights Will Cost

Spirit says the new flights will start at $85 one-way from Fort Lauderdale to Belize, and $180 one-way from Belize to Fort Lauderdale. Right now, the flights are showing up as sold out on Spirits’s website, so it’s hard to say just how much they will cost when it’s all said and done.

Where to Go When You Get There

As we said, Belize is so many destinations in one; that means you can really customize the kind of vacation you want to plan, whether it’s a retreat into the jungles and rivers, an authentic journey into Garifuna culture in Hopkins; a classic beachy getaway in Ambergris Caye or a fun, hip retreat into endlessly lovable Placencia.

https://www.caribjournal.com/author/alexander-britell/

Travelore News: US No-Frills Pioneer Spirit Airlines Files For Bankruptcy Protection

Spirit Airlines has filed for bankruptcy protection, it said on Monday, after the pioneer of no-frills travel in the United States struggled with a long run of quarterly losses, failed merger attempts and looming debt maturities.

The Florida-based airline said it had pre-arranged a deal with its bondholders to restructure its debts and raise money to help it operate during the bankruptcy process, which it expects to exit in the first quarter of 2025.

The carrier said it expected to continue operating its business as normal through the proceedings and customers could book and fly without interruption.

The Chapter 11 process will not impact wages or benefits of its employees, it said. Its vendors and aircraft lessors will also continue to be paid and will not be impaired, it added.

The company said it expected to be delisted from the New York Stock Exchange in the near term, and its shares to be canceled and have no value as part of the restructuring.

PROFIT STRUGGLE

Spirit, known for its bright yellow livery, is the first major U.S. airline to file for Chapter 11 since 2011. It has been facing an uncertain future after the collapse of its $3.8 billion planned merger with JetBlue Airways (JBLU.O), opens new tab in January.

Meanwhile, intense competition among U.S. carriers for price-sensitive leisure travelers as well as an oversupply of airline seats in the domestic market hit its pricing power. Its average fare per passenger was down 19% year-on-year in the first half of this year from a year earlier.

It is also among the airlines most heavily affected by issues with RTX's (RTX.N), opens new tab Pratt & Whitney Geared Turbofan engines, which have forced it to ground multiple aircraft and driven up costs.

Spirit has not posted a full-year profit since 2019. It lost about $360 million in the first half of this year despite strong travel demand.

Analysts say a merger with JetBlue opens new tab would have thrown a lifeline to the company. However, a Boston judge blocked the deal on the grounds it would reduce competition, raising doubts about the company's ability to manage looming debt maturities.

Spirit has been shrinking its operations as part of its efforts to cut costs and shore up its finances. It has furloughed hundreds of pilots and delayed aircraft deliveries. It is also selling its planes to boost liquidity.

A 'COMPREHENSIVE' RESTRUCTURING

It filed for Chapter 11 protection in New York. The airline said a "comprehensive balance sheet restructuring" was expected to reduce total debt, provide increased financial flexibility, position it for long-term success, and accelerate investments.
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As part of the restructuring agreement, the company has received commitments for a $350 million equity investment from existing bondholders. It plans to reduce its debt load by $795 million via debt/equity swap transaction.

Existing bondholders will also provide $300 million in debtor-in-possession (DIP) financing, which, together with available cash, is expected to support the airline through the Chapter 11 process.
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Spirit's flight attendants union said the bankruptcy filing does not change pay, benefits or working conditions for its members. It told flight attendants to continue to work as planned.

Spirit's shares, which have plunged more than 90% this year, were halted for trading on Monday.

HUMBLE BEGINNINGS

The company started out as a long-haul trucking company in 1964 before shifting to aviation around 1983. It offered leisure packages to popular destinations under the name Charter One Airlines and rebranded to Spirit in 1992.

The discount carrier became popular with budget-conscious customers willing to forgo amenities like checked bags and seat assignments.

Ultra-low-cost carriers, which excelled at keeping their expenses low and offering affordable, no-frills travel, have struggled since the pandemic as some travelers prefer to pay extra for a more comfortable journey as they pursue experiences.

By Shivansh Tiwary and Rajesh Kumar Singh, Reuters Spirit's troubles, along with those at some of rival budget carriers, have spurred talk of a flawed business model among some Wall Street analysts.

Travelore News: Frontier, Spirit Airlines Revive Merger Talks, WSJ Reports

Frontier Airlines is exploring a renewed bid for Spirit Airlines opens new tab, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.

Spirit has been losing money despite strong travel demand and has failed to report a profit in five out of the last six quarters, raising doubts about its ability to manage looming debt maturities.

The two budget carriers have had recent discussions about a possible merger, though the talks are at an early stage and a deal may not come to fruition, the WSJ report said.

If Spirit and Frontier reach a deal, it would likely happen as part of Spirit restructuring its debt and other liabilities in bankruptcy, the report added.

Spirit declined to comment on the report, while Frontier did not immediately respond to a request for comment.

In 2022, Spirit Airlines came close to a merger deal with Frontier Group Holdings opens new tab, the parent company of Frontier Airlines. It was terminated after JetBlue Airways won the bidding war for Spirit.

However, that $3.8 billion deal was blocked by the U.S. Department of Justice in March.

The Journal reported earlier in the month that Spirit was in talks with bondholders over the terms of a potential bankruptcy filing in the wake of its failed merger with JetBlue.

The ultra-low-cost carrier said last week it had reached an agreement with its credit card processor U.S. Bank National Association to extend a debt refinancing deadline by two months until Dec. 23.

The airline has also warned of a bigger third-quarter loss due to a tough race for price-sensitive leisure travelers and an oversupply of airline seats in the domestic market.

Travelore News: JetBlue, Spirit Airlines Call Off $3.8 Bln Merger On Antitrust Hurdle

Low-cost air carriers JetBlue Airways opens new tab and Spirit Airlines opens new tab canceled their $3.8-billion merger agreement on Monday, seeing no path forward after a U.S. judge blocked the deal in January on anti-competition concerns.

A successful deal would have created the fifth-largest carrier in the United States and helped Spirit ensure its survival, but the deal had been on the ropes ever since a Boston judge said it would harm consumers by reducing competition.

"With the ruling from the federal court and the Department of Justice’s continued opposition, the probability of getting the green light to move forward with the merger anytime soon is extremely low," JetBlue CEO Joanna Geraghty told employees in an internal note seen by Reuters.

"Even if the ruling was overturned on appeal, we simply don’t see a path to regulatory approval by the required July 24 deadline."

Spirit CEO Ted Christie said in a statement, "we concluded that current regulatory obstacles will not permit us to close this transaction in a timely fashion under the merger agreement." Under the agreement, JetBlue will pay Spirit $69 million. While the merger agreement was in effect, Spirit stockholders received approximately $425 million in total pre-payments.

Without the JetBlue deal, Spirit, the seventh-largest U.S. carrier, faces a rough road ahead. The ultra-low-cost carrier has grappled with weak demand in its key markets as it seeks to return to sustainable profitability. Some analysts have even suggested the company could face bankruptcy if it cannot shore up finances.

Spirit shares fell 14% in premarket trading, while JetBlue, the sixth-largest U.S carrier, shares rose 5.5%.

The decision is a victory for the Biden Administration, which has taken a hard line against tie-ups in the aviation sector and argued the deal would boost ticket prices for consumers.

The administration has used antitrust action and other enforcement efforts to try to bring down prices for U.S. residents across several industries.

The ruling by U.S. District Judge William Young found the proposed deal was likely to hurt competition in the U.S. aviation market and could hike ticket prices.

That prompted JetBlue to raise doubts over the future of its deal, saying it might be unable to meet certain conditions required as part of the agreement.

The Justice Department and Transportation Department did not immediately comment.

JetBlue opted not to appeal a separate ruling that had declared its Northeast partnership with American Airlines anticompetitive.

JetBlue, which last month hiked baggage fees, said is working on numerous near-term efforts to boost revenue by more than $300 million and said it is on track to deliver $175-200 million in cost savings from its structural cost program and $75 million in maintenance savings from its fleet modernization.

A judge in May sided with the Justice Department and six states in a lawsuit challenging the joint venture that American and JetBlue entered into in 2020, called the "Northeast Alliance," joining forces for flights in and out of New York City and Boston, coordinating schedules and pooling revenue.

Spirit said it was taking steps to ensure the strength of its balance sheet and ongoing operations and retained Perella Weinberg & Partners and Davis Polk & Wardwell as advisors.

Reporting by Aatreyee Dasgupta in Bengaluru and David Shepardson in Washington; Editing by David Gaffen, Devika Syamnath, Arun Koyyur and Nick Zieminski

Travelore News: US Seeks To Block JetBlue's Spirit Airlines Deal At Trial

A U.S. Department of Justice lawyer on Tuesday urged a federal judge to block JetBlue Airways' (JBLU.O) planned $3.8 billion acquisition of ultra-low-cost carrier Spirit Airlines (SAVE.N) at the start of closely-watched antitrust trial.

case in federal court in Boston is part of a broad effort by President Joe Biden's administration to preserve competition among the lowest cost airlines, ensuring air travel remains affordable for many more US consumers.

Justice Department attorney Arianna Markel in her opening statement told U.S. District Judge William Young that the deal would lead to fewer flights and seats and higher prices.

She said a JetBlue internal analysis projected its fares would increase 30% once Spirit, which competes with JetBlue on around 100 routes nationally, is not a competitor. Passengers would suffer roughly $1 billion in net harm annually, she said.

"JetBlue is counting on the fact that eliminating Spirit and the competition Spirit provides will allow JetBlue to raise fares," Markel said. "That is real harm to real people."

JetBlue attorney Ryan Shores countered that the case was a "misguided" challenge to a merger between the U.S.'s sixth and seventh largest airlines, which combined control less than 8% of the domestic market dominated by four larger airlines.

Those four U.S. carriers - United Airlines, American Airlines, Delta Air Lines and Southwest Airlines - dominate 80% of the domestic market following a series of previous airline mergers that the federal government blessed, Shores said.

Yet Shores said the government had wrongly tried to bar JetBlue from growing into a larger challenge to those four airlines and disrupt a market that has become "bad for competition and bad for consumers.
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"The government in this case has lost the forest for the trees," Shores said.

The trial began on the same day JetBlue posted lower-than-expected third-quarter results, citing air traffic control and weather delays during the summer travel season, and projected a larger-than-expected fourth-quarter loss.

Its shares were down 16.7% to a near 12-year low in morning trading.

JetBlue has called the deal pro-consumer and has sought to ease U.S. regulators' antitrust concerns by agreeing to sell off Spirit's gates and slots at certain airports in New York City, Boston, Newark and Fort Lauderdale.

But the Justice Department has said those divestitures are not enough, and in a lawsuit filed in March argued the combined airline would harm consumers by increasing fares and reducing choice on routes nationwide.

The department is suing alongside Democratic attorneys general from six states and the District of Columbia. They call Spirit a "disruptive and innovative airline" whose low-cost, no-frills model has forced price cuts industry-wide.

The department's case is part of a broader push by the Biden administration to aggressively step up antitrust enforcement, an initiative that has had mixed results in court.

JetBlue was already the focus of one of its earlier cases, with a different Boston judge, Leo Sorokin, in May siding with the government in finding that JetBlue's U.S. Northeast partnership with American Airlines violated antitrust law.

JetBlue subsequently decided to terminate the alliance. American Airlines is appealing Sorokin's decision.

Reuters. Reporting by Nate Raymond in Boston, Additional reporting by Jonathan Stempel in New York; Editing by Alexia Garamfalvi, Nick Zieminski and Marguerita Choy