Spirit Airlines is expected to emerge from Chapter 11 bankruptcy this year – Nationwide

The parent company of Spirit Airlines says it expects to emerge from Chapter 11 bankruptcy in late spring or early summer, after entering into a preliminary agreement with its lenders and secured creditors that provides the support needed to complete its reorganization.

The early deal will help Spirit complete changes to its fleet, route network and cost structure as it works to emerge as the “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 seats with more legroom.

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“Air will emerge as a strong competitor, agile and positioned to deliver the value that American consumers expect at a price they want to pay,” said CEO Dave Davis.

The budget carrier filed for new bankruptcy protection in August, months after emerging from Chapter 11 reorganization. Davis said at the time the airline’s previous Chapter 11 filing focused on reducing debt and raising capital, but after exiting that process last March, “it became clear that there is still a lot of work to be done and many tools are available to better position Spirit for the future.”

The Florida-based company quickly followed news of its second bankruptcy of the year with announcements that it would suspend operations in about a dozen US cities and lay off 1,800 airline workers. The airline also instituted furloughs and job cuts before filing for its first bankruptcy.

Low-cost airlines like Spirit have come under pressure from major airlines, which have rolled out their own low-cost offerings.

Known for its bright yellow planes and no-frills service, Spirit has been struggling since the COVID-19 pandemic amid rising operating costs and mounting debt. At the time of its first Chapter 11 filing in November 2024, Spirit had lost more than $2.5 billion since the start of 2020.