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What does Spirit Airlines’ bankruptcy mean for you?
Spirit Airlines, the airline of choice for many budget travelers, filed for bankruptcy protection Monday, raising questions about the viability of no-frills airlines in the post-pandemic era, as consumer preferences shift toward more premium offerings.
Customers with plans to fly on the airline over Thanksgiving and beyond are also concerned about what the filing means for their upcoming trips, as well as airfares generally.
Spirit has entered into a restructuring agreement with its bondholders in order to reduce the airline’s debt and provide it with increased financial flexibility, Spirit said in an open letter to customers Monday. The longterm aim, Spirit said, is to provide its guests “with enhanced travel experiences and greater value.”
The airline, known for its bargain fares, said it expects to emerge from bankruptcy in the first quarter of 2025, “even better positioned to deliver the best value in the sky.”
Industry experts attribute Spirit’s financial woes in part to changing consumer preferences as they demand more amenities while flying.
“We can clearly see that consumer preferences have changed in favor of a more premium product, and the low-cost airlines are struggling,” Jungho Suh, management professor at George Washington University School of Business told CBS MoneyWatch. “They don’t want to see any added costs, they want an all-in, full-service offering.”
What if I am booked on a Spirit flight?
Spirit plainly states that customers with existing reservations can still use their tickets. Their flight credits and loyalty points are also still valid, and can be redeemed as usual. Customers may also make new reservations for future travel.
“The most important thing to know is that you can continue to book and fly now and in the future,” the airline said.
Additionally, Spirit customers can still benefit from the airline’s Free Spirit loyalty program, as well as accrue and redeem Saver$ Club perks and credit card terms.
Schedule modifications
That said, industry experts advise customers to keep a close eye on their upcoming bookings. That includes updating their contact information so that the airline can reach them with modifications to their flights.
“Make sure your contact information is up to date, and keep an eagle eye on your reservations,” Brian Kelly, founder of The Points Guy — a site focused on airline deals and travel rewards — told CBS MoneyWatch.
There’s no need to panic, Kelly said, but the airline is expected to trim its schedule, which could result in your flight time changing, or being canceled.
“They’re not going to stop flying tomorrow, but inevitably they’re going to emerge an even smaller airline after this process, so that means there are going to be some hiccups with routes,” he said.
Aviation industry consultant Robert Mann said some consumers who were accustomed to flying Spirit out of major airports may have to fly out of a smaller hub, as Spirit withdraws from major hubs served by legacy carriers.
“You could see that happen where Spirit decided to compete, and has now decided it wasn’t such a good idea,” he said.
What will happen to airfares?
Spirit and other low-cost carriers have helped depress airfares, even for consumers who don’t fly on budget airlines.
“Whether you like them or not, having ultra low-cost carriers is good for our overall aviation ecosystem and good for consumers, even if you never buy them,” Kelly said.
Spirit will emerge a smaller airline, which means there will be fewer low-cost flights on most routes, and airfares could rise across the board.
“The smaller Spirit is and the less routes they serve, the less pressure there will be on other airlines in those markets, resulting in overall higher fares,” Kelly said. “This isn’t good for consumers. There’s no positive side to this.”
FRAMINGHAM – Stop & Shop stores across Massachusetts had empty shelves on Monday due to a cyberattack.
Stop & Shop shelves empty
People walking into the store ready to stock up before Thanksgiving had to leave empty-handed.
“I can’t buy carrots. I can’t buy lettuce. The vegetables are slim and the meat department is low,” shopper Jim Noto said. “Very disappointing especially this time of the year. It’s just a shame because they are losing a lot of customers.”
“Empty. Completely empty! All of it,” said Maryanne Lambert, who could only get half of her grocery list.
“The produce just wasn’t there. It was awful. What’s going on?” Instacart shopper Tina Diblasi said. She is thinking of taking a vacation from the delivery service until the shelves are stocked again.
Shoppers said they are going to find another store to get their necessities ahead of the upcoming holiday.
Cybersecurity issue
Stop & Shop says it’s a cybersecurity issue affecting its parent company, Ahold Delhaize, and that they have placed signs in stores that tell customers it was because of an IT systems outage.
“While there may be some limited inventory for certain products, we are working to re-stock our shelves and anticipate item availability to continue to improve over the next few days,” the store said in a statement.
Ahold Delhaize says it is investigating the issue and has told law enforcement about the breach. They are taking some systems offline to protect them.
“This issue and subsequent mitigating actions have affected certain Ahold Delhaize USA brands and services including a number of pharmacies and certain e-commerce operations,” Ahold Delhaize said in a statement.
Stop & Shop announced in July that it would be closing 32 stores across five states that were “underperforming.” Seven of those stores were in Massachusetts. The company donated all of the remaining food at the shuttered supermarkets to food shelters near their stores.
“Stop and Shop is a business in some trouble. It changed CEOs in September. They’re closing almost 1 in 10 of their stores even before this. It does seem to be targeting their financial transaction systems so they couldn’t manage payments but honestly, everything is vulnerable,” Professor of Food Economics and Policy at Tufts University in the Friedman School of Nutrition William Masters said.
Paul Teal, an actor known for his recurring role on the TV series “One Tree Hill,” died on Friday after a battle with cancer, a representative for Teal confirmed to CBS News.
“His remarkable talent, along with his gentle spirit, has left an indelible mark on all of us fortunate enough to have known him,” Susan Tolar Walters of STW Talent Agency said in a statement on Monday. “The loss we feel in our hearts is immeasurable.”
The actor’s fiancée, Emilia Torello, shared a tribute to Teal in a Sunday Instagram post, calling him “the most thoughtful, inspiring, driven, self-disciplined, loving man.”
“Paul, you were my soulmate, my soon-to-be-husband, my rock, and my future. You filled my lungs with laughter, my stomach with butterflies, and my heart with love,” Torello wrote in the emotional post. “You were taken too soon, in a battle that you fought bravely without fail. While a part of me died with you, I promise to fight to find joy in life as hard as you fought to live every single day. The world is lucky to have even had a moment with Paul Teal, and I am the luckiest person in it, because I got to call you mine. I will love you forever.”
Teal, who played Josh in the seventh season of “One Tree Hill,” was also remembered by stars Sophia Bush and Bethany Joy Lenz.
Bush said she was “incredibly saddened to hear about the passing of Paul Teal. We are just starting to watch his OTH episodes on [“Drama Queens” podcast] and he’s such a talent.”
Lenz worked with Teal on “One Tree Hill” and on a musical production of “The Notebook.”
“He was too young to die. Far too young. I’m gutted,” she wrote in an Instagram post. “Paul, your time here was like a summer romance for all of us who knew you, especially if only for a season. Bursting, exciting, deeply moving, and unforgettable.”
Teal also appeared in “Outer Banks” and “The Staircase.” He was also part of the cast of “The Hunting Wives,” which is expected to premiere in 2025.
CBS News
TNT’s “Inside the NBA” will air on ESPN, ABC starting next season, as part of NBA settlement
“Inside the NBA” will continue, even though games will no longer be airing on TNT at the end of this season.
The popular studio show will appear on ESPN and ABC beginning next season as part of a settlement between Warner Bros. Discovery and the NBA that was announced on Monday.
The settlement gives TNT Sports, Bleacher Report and House of Highlights a global license for NBA content with no rights fee for the next 11 years.
Warner Bros. Discovery, the parent company of TNT Sports, sued the NBA in New York state court in August after the league did not accept the company’s matching offer for one of the packages in its new 11-year media rights deal, which will begin with the 2025-26 season.
Even though “Inside the NBA” will be on ESPN and ABC, TNT Sports will continue to produce the show. It will air from Atlanta, except when the show goes on the road.
The quartet of Ernie Johnson Jr., Charles Barkley, Kenny Smith and Shaquille O’Neal will remain with the show. Barkley signed an extension with Warner Bros. Discovery in August despite the company losing the NBA.
“‘Inside the NBA’ is universally recognized as one of the best and most culturally impactful shows in sports,” ESPN chairman Jimmy Pitaro said. “We have long-admired the immensely talented team and are thrilled to add their chemistry and knowledge to our robust set of NBA studio offerings to super-serve NBA fans like never before. The addition of ‘Inside the NBA’ further solidifies ESPN as the preeminent destination for sports fans.”
“Inside the NBA” will handle pregame, halftime and postgame coverage of the NBA Finals on ABC, conference finals and the NBA Playoffs. During the regular season, it will be part of opening week coverage, as well as Christmas Day, all ABC games after Jan. 1, the final week of the season and other marquee events.
“The opportunity to continue the iconic and Emmy Award-winning ‘Inside the NBA’ is a huge win for basketball fans everywhere,” NBA Commissioner Adam Silver said in a statement. “We look forward to building on our longstanding partnership with TNT Sports and working together to promote NBA content across key WBD and NBA platforms.”
“Inside the NBA” started in 1989, Johnson became the host in 1990 while Smith joined fulltime in 1998. Barkley came aboard in 2000 followed by O’Neal in 2011. The show has garnered 21 Sports Emmy Awards.
ESPN will also continue to produce “NBA Countdown” and “NBA Today.”
Warner Bros. Discovery will also continue its relationship with the league’s digital operations, including NBA.com, for five seasons. TNT Sports and the NBA have jointly managed NBA Digital since 2009.
Even though TNT Sports will not be airing games in the United States beginning next season, it does have rights to air a full package of games in select countries, including Latin America (excluding Brazil and Mexico), Poland, Denmark, Finland, Norway and Sweden.
TNT Sports will also begin showing 13 Big 12 football and 15 men’s basketball games next season as part of a sublicense with ESPN. TNT will air two College Football Playoff games beginning this season also under a sublicense with ESPN.
Turner Sports has had an NBA package since 1984 and games have been on TNT since the network launched in 1988. That will end after this season.
“Together these agreements ensure fans will continue to enjoy TNT’s ‘Inside the NBA’ and create tremendous value for our entire portfolio as we accelerate the growth of TNT Sports, Bleacher Report, House of Highlights and our global sports business,” Warner Bros. Discovery CEO David Zaslav said in a statement. “We are pleased to partner with the NBA and Disney/ESPN, and to have solidified long-term rights and revenue for WBD.”
