Spirit Airlines Announces Restructuring Support Agreement and Reorganization Plan | News
Spirit Aviation Holdings, Inc., parent company of Spirit Airlines, LLC (collectively “Spirit” or the “Company”), announced that it will today file a Restructuring Support Agreement (the “RSA”) and a Plan of Reorganization (the “Plan”) in the US Bankruptcy Court for the Southern District of New York (the “Court”). This very important milestone is another important step forward in Spirit’s restructuring process and reflects the continued support of the company’s DIP lenders and secured note holders. The RSA and the Plan outline the financial framework underlying Spirit’s expected emergence from Chapter 11 by early summer.
Upon its emergence, Spirit will strengthen its position as America’s premier value carrier with the following benefits:
Rightsized fleet: The airline plans to further expand its fleet to 76-80 aircraft by the third quarter of 2026, mainly consisting of Airbus A320/321ceo aircraft. In addition to previously announced fleet adjustments, the planned adjustment will further reduce Spirit’s debt, lease obligations and aircraft costs. The company expects to add aircraft between 2027 and 2030, consistent with profitable growth opportunities.
Optimized Network: Spirit will continue to tailor its network to consumer demand and focus on its strongest routes and markets, including Fort Lauderdale (FLL), Orlando (MCO), Detroit (DTW) and the New York City region (EWR/LGA). The airline will increase aircraft occupancy on peak days, reduce off-peak flying and maintain the flexibility to adapt to seasonal demand in different markets.
More Premium Choices: Spirit plans to expand its Spirit First and Premium Economy products by adding a third row of Big Front Seat® and continuing the rollout of Premium Economy seats, while continuing to lead the industry in price and focus on value.
Stronger financials: The company will further reduce its cost structure, increasing its cost advantage over existing and other airlines. Spirit’s debt and lease obligations are expected to be reduced from $7.4 billion pre-filing to approximately $2 billion post-filing. The company will continue to pursue efficiencies and reduce costs across the business.
“We are excited to reach another milestone that reflects the confidence our lenders and bondholders have in our future, with our plan better positioning Spirit to continue delivering value to American consumers,” said Dave Davis, President and Chief Executive Officer. “While we still have work to do with other key stakeholders, today’s agreements and documents are very material steps forward toward emergence. I also want to thank our team members and guests for their support as we work together to build a stronger spirit.”
During the restructuring process, guests can continue to book, travel and use tickets, credits and loyalty points as normal.
