Spirit Airlines announced Tuesday it expects to complete its reorganization under Chapter 11 bankruptcy by late spring or early summer after management reached a tentative financing agreement with its top lenders.
But the troubled Dania Beach-based carrier, which sought bankruptcy protection from creditors for the second time in less than a year in August, won’t be the pure-play discounter that set it apart from the rest of the commercial airline industry for years.
“Spirit intends to emerge from Chapter 11 in late spring or early summer as a strong low-cost, value-driven carrier offering Guests basic and premium products at the lowest fares in the sky,” the company said in a statement that mirrored what its lead lawyer told a New York bankruptcy judge at a Tuesday hearing.
“This agreement in principle is the result of months of hard work and allows Spirit to move toward completing its transformation,” said Dave Davis, president and chief executive officer in the statement. “Spirit will emerge as a strong, leaner competitor that is positioned to profitably deliver the value American consumers expect at a price they want to pay.”
The airline, which ended 2025 as the market share leader at Fort Lauderdale-Hollywood International Airport, will be much smaller. As previously reported, the airline has been offloading much of its fleet, which topped 200 Airbus jetliners prior to its latest Chapter 11 filing. After lease cancellations and a proposed auction of 20 planes set for late April, the airline will be operating around 114 aircraft, according to court filings.
The airline said it expects to focus its flying around higher‑demand periods, operating planes on peak travel days, reducing “off‑peak” flying and being more sensitive to seasonal travel trends.
The deal with lenders reportedly would cut the airline’s post-Chapter 11 debt and aircraft lease obligations from $7.4 billion to $2.1 billion, with annual aircraft operating costs cut by $550 billion yearly, a reduction of around 65%.
Spirit customers would also see expanded first class and premium seating and updates to the carrier’s loyalty program.
Spirit Airlines headquarters is shown in Dania Beach. The airline now says it expects to exit Chapter 11 bankruptcy proceedings this spring or summer after working out a financing agreement with its leading lenders. (Mike Stocker/South Florida Sun Sentinel)
Pilots seek stability
Spirit pilots, represented by the Air Line Pilots Association International, said Tuesday’s announcement “provides a meaningful path forward for our pilots and their families.
“The Master Executive Council [MEC] will continue its detailed and independent analysis of Spirit’s business plan and will engage management directly on any matters that may impact our pilot group,” the union said in a statement. “Spirit pilots have demonstrated extraordinary professionalism and commitment throughout this restructuring process. Our focus on safely operating the airline during this period of uncertainty has been instrumental in maintaining stability.”
It was the unionized pilots who in January wrote an open letter to Spirit bondholders urging them to support a restructuring of the airline instead of liquidating it.
Spirit, they said, “employs over 15,000 nationally, directly and indirectly, including more than 6,000 in Florida.”
Those numbers include more than 2,000 pilots nationally and close to 1,000 in Florida “who work alongside flight attendants, mechanics, dispatchers, instructors, ground personnel, and corporate staff. These are skilled, middle-class careers that support families and help drive the region’s economy.”
“Spirit may be in Chapter 11, but bankruptcy does not equate to collapse,” the letter said. “This process exists to allow companies to restructure their debt, stabilize operations, and emerge stronger. That is the purpose of this process.”
Late last year, the pilots and flight attendants, whose union backed the ALPA letter, agreed to produce $100 million in labor cost reductions. But 1,800 attendants were furloughed in December. This month, following operational troubles that led to a spate of flight delays and cancellations, the airline recalled 500 attendants.
The airline has also pledged to explore deals that could see Spirit acquired or merged with another carrier. But reported talks with perennial suitor Frontier Airlines and with the investment firm Castlelake have not produced any results.