Spirit Airlines’ parent company says it expects to exit Chapter 11 bankruptcy within the late spring or early summer, after striking a preliminary cope with its lenders and secured creditors that gives the support needed to complete its restructuring.
The early-stage agreement would help Spirit finalize changes to its fleet, route network and value structure as it really works toward emerging as “a brand new Spirit” — a smaller, leaner carrier still focused on offering low fares but with more options like premium economy and its version of first-class seating with more legroom.
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“Spirit will emerge as a powerful, leaner competitor that’s positioned to profitably deliver the worth American consumers expect at a price they need to pay,” said CEO Dave Davis.
The budget carrier filed for fresh bankruptcy protection in August, months after emerging from a Chapter 11 reorganization. Davis said on the time that the airline’s previous Chapter 11 petition focused on reducing debt and raising capital, but after exiting that process last March, it had “turn out to be clear that there’s far more work to be done and plenty of more tools can be found to best position Spirit for the longer term.”
The Florida company quickly followed the news of its second bankruptcy in a 12 months with announcements that it might suspend operations in a couple of dozen U.S. cities and furlough 1,800 flight attendants. The airline also instituted furloughs and job cuts before its first bankruptcy filing.
Low-cost carriers like Spirit have been under pressure by greater airlines, which have rolled out their very own low-cost offerings.
Known for its brilliant yellow planes and no-frills service, Spirit has had a rough ride for the reason that COVID-19 pandemic amid rising operation costs and its mounting debt. By the point of its first Chapter 11 filing in November 2024, Spirit had lost greater than $2.5 billion for the reason that start of 2020.
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