Spirit Airlines, a leading low-fare carrier, recently announced it filed for Chapter 11 bankruptcy protection after struggling with losses, growing debt and a failed merger during the post-pandemic travel lull.
Once the bankruptcy filing became public, Spirit Airlines issued an open letter to all Spirit guests and a press release announcing its entry into a restructuring support agreement (RSA) as part of the filing. The news has since been covered by major media outlets nationwide. Given the gravity of the situation, it prompted me to reflect: From a communications perspective, how effectively did Spirit handle this announcement?
Here’s what Spirit handled well:
- Proactive media strategy: Spirit managed the media narrative by issuing a press release and actively engaging with reporters to provide clarity about the news. This approach helped to ensure the news was communicated clearly and accurately across national outlets.
- Provided reassurance to customers and stakeholders: The airline clearly communicated that the filing is part of a restructuring plan for its business and to strengthen its financial position. The airline also reassured guests it intends to continue flying as normal and that the filing will not affect their travel plans.
- Focused on future growth and stability: Leadership positioned the filing as a step toward strengthening its long-term sustainability. It indicated the goal of the restructuring process is to lower debt, reduce costs and provide the opportunity to improve customer experiences. Through this messaging, Spirit strategically positioned the bankruptcy as a growth opportunity, as opposed to a forthcoming crisis.
- Transparency: The detailed press release that laid out the reasonings of the filing showcases the effort Spirit put in to be transparent with investors and customers. Without transparency, you risk speculation and negative sentiment.
- Acknowledged the news on social: Spirit recognized the news on social media and provided reassurance to their followers through Facebook and Instagram, with a link to the open letter to all Spirit guests. Not acknowledging the filing on social media could have caused a disconnect with their customers and damage to their reputation.
With that being said, there’s always room for improvement.
Here’s how Spirit could’ve handled this better:
- Additional details on the short-term impact: The announcement did not provide detailed insights into the short-term impact on passengers beyond normal operations. Adding specific messages on customer support, refunds and booking flexibility during the transition could have reduced uncertainty for passengers.
- Clarity about long-term impact: In terms of financial stability and the restructuring’s impact on Spirit’s growth strategy, messaging was pretty vague and not clearly outlined. Because of this, the announcement caused some confusion regarding the long-term effects of this filing.
- Transparency on how the workforce may evolve: Spirit shared the bankruptcy filing would not affect employee wages or benefits, but did not delve into specific details about the workforce, such as job restructuring or other changes that might occur as part of the Chapter 11 process.
Spirit expects to complete this process in the first quarter of 2025. We’ll be keeping an eye on how they choose to communicate with their customers and stakeholders (ideally in a clear, transparent and reassuring way). Stay tuned from more reflection on the airline’s communication approach as the filing continues to unfold.
Alexis Schuchert is a Senior Integrated Communications Specialist at Franco. Connect with her on LinkedIn.
