Listen to this articleThe basics:
- Spirit files Chapter 11 bankruptcy for the second time in a year
- Airline says guests can still book flights, use credits and loyalty points
- Restructuring to optimize fleet, redesign routes and cut costs
- Spirit expects delisting from NYSE American Stock Exchange soon
For the second time in a year, Spirit Airlines has filed for bankruptcy.
Parent company Spirit Aviation Holdings Inc. announced Aug. 29 a “comprehensive restructuring” of the airline, which Spirit said is aimed at positioning its business for long-term success.
The company filed a Chapter 11 petition in the U.S. Bankruptcy Court for the Southern District of New York.
Spirit previously filed for bankruptcy protection in November 2024 and emerged from that process March 12 of this year. A planned merger with JetBlue was called off in March 2024.
“Since emerging from our previous restructuring, which was targeted exclusively on reducing Spirit’s funded debt and raising equity capital, it has become clear that there is much more work to be done and many more tools are available to best position Spirit for the future,” said Dave Davis, president and CEO. “After thoroughly evaluating our options and considering recent events and the market pressures facing our industry, our Board of Directors decided that a court-supervised process is the best path forward to make the changes needed to ensure our long-term success.”
Spirit operates out of Terminal B at Newark Liberty International Airport and also serves Atlantic City International Airport, where it recently announced nonstop service to Miami. The company said customers can continue to book, travel and use tickets, credits and loyalty points during the restructuring process.
Key things to know:
- Spirit said it has been engaged with some of its largest lessors, secured noteholders and key stakeholders over the past few months about the path forward
- Company filed motions with the court to enable it to conduct business during the restructuring process
- Spirit says wages and benefits will continue, as will payments for goods and services provided on or after the filing date in the ordinary course
- The company expects to double down on efforts to redesign its network; optimize its fleet; address its cost structure; and effectively compete and meet consumer preferences with its three travel options – Spirit First, Premium Economy and Value
- Spirit expects to be delisted from the NYSE American Stock Exchange in the near term as a result of the Chapter 11 filing
Changes on the horizon
Spirit says it intends to use the Chapter 11 process to implement broad changes necessary to transition the company for a sustainable future – and position it to deliver the best value in the sky for years to come.
Since emerging from our previous restructuring … it has become clear that there is much more work to be done and many more tools are available to best position Spirit for the future.
– Dave Davis, Spirit Airlines, president and CEO
“We have evaluated every corner of our business and are proceeding with a comprehensive approach in which we will be far more strategic about our fleet, markets, and opportunities in order to best serve our guests, team members, and other stakeholders,” said Davis.
“As we move forward, guests can continue to rely on Spirit to provide high-value travel options and connect them with the people and places that matter most. On behalf of our board and leadership, I want to thank our team members for their continued dedication, resilience, and commitment to delivering a safe, reliable operation and excellent service to our guests,” Davis added.
