Spirit Airlines CEO Ted Christie received a $3.8 million retention bonus a week before the Florida-based carrier filed for Chapter 11 bankruptcy. Christie will retain the bonus if he remains with the company for another year. The airline's stock has dropped over 90% this year. It has faced challenges including a blocked $3.8 billion merger with JetBlue and failed talks with Frontier. The pandemic disrupted Spirit's operations and travel patterns, reducing its daily aircraft utilization and increasing costs. Demand has shifted to full-service airlines as higher-income travelers vacation more, while inflation impacts lower-income consumers.
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00:00It's Benzinga bringing Wall Street to Main Street.
00:02Spirit Airlines CEO Ted Christie received a $3.8 million retention bonus a week before
00:07the Florida-based carrier filed for Chapter 11 bankruptcy.
00:10Christie will retain the bonus if he remains with the company for another year.
00:14The airline's stock has dropped over 90% this year.
00:17It has faced challenges including a blocked $3.8 billion merger with JetBlue
00:21and failed talks with Frontier.
00:23The pandemic disrupted Spirit's operations and travel patterns,
00:27reducing its daily aircraft utilization and increasing costs.
00:30Demand has shifted to full-service airlines as higher-income travelers vacation more,
00:34while inflation impacts lower-income consumers.