Spirit Airlines’ parent company expects to exit Chapter 11 bankruptcy in the late spring or early summer, according to statements tied to a preliminary deal with lenders and secured creditors. The company said the early-stage agreement would give it the support it needs to complete its restructuring, including changes it is pursuing to its fleet, route network and overall cost structure. CEO Dave Davis said the carrier expects to emerge as “a new Spirit,” a smaller and leaner airline while still focusing on low fares and adding options including premium economy and seating meant to offer more legroom.
The bankruptcy exit expectations come after Spirit filed for fresh protection in August, months after emerging from a prior Chapter 11 reorganization. Davis said at the time that Spirit’s earlier Chapter 11 filing focused on reducing debt and raising capital, but that after it exited the process last March, “it had become clear that there is much more work to be done and many more tools are available to best position Spirit for the future.”
In its latest filing-related messaging, the company described the preliminary agreement with lenders and secured creditors as a step that would let it move forward with the restructuring work it needs to finish. The stated goal is to adjust how Spirit operates so it can compete profitably, while continuing to target consumers willing to pay low fares for air travel.
Alongside its restructuring plans, Spirit also moved quickly after the announcement of its second bankruptcy. The company said it would suspend operations in about a dozen U.S. cities and furlough 1,800 flight attendants. It also previously instituted furloughs and job cuts before its first bankruptcy filing.
Spirit’s challenges have intensified since the COVID-19 pandemic, with the carrier facing rising operating costs and mounting debt. By the time of its first Chapter 11 filing in November 2024, Spirit had lost more than $2.5 billion since the start of 2020, the company said. Low-cost carriers have faced additional pressure as larger airlines have introduced their own low-fare offerings, competing in some of the same markets.
Known for its bright yellow planes and no-frills model, Spirit has sought to reshape its approach through bankruptcy as it attempts to emerge with a smaller footprint and a tighter cost structure.