Spirit Airlines said Wednesday it officially ended Chapter 11 bankruptcy proceedings “with substantially low debt and increased financial flexibility” after the South Florida-based carrier supported pursuing its own recovery plan by rejecting multiple purchase bids from rival Frontier Airlines.
“We are pleased to complete the streamlined restructuring and continue to transform and invest in the guest experience, and to continue our transformation and investments,” CEO and President Ted Christie said in a statement. “Through this process, we continue to make meaningful progress in strengthening our product offerings, returning to profitability and focusing on airline positioning for long-term success. Today, we are working on a strategy to redefine low-cost travel with new, high-value travel options.”
Christie said he will continue to lead the airline with the support of an existing executive group. Spirit is headquartered in Dania Beach and is one of the leading airlines at Fort Lauderdale Hollywood International Airport. The company had not made net profits before the Covid-19 pandemic, but filed on December 11 last year in the face of a heavy debt obligation and an erosion customer base.
The Spirit reorganization plan was recently confirmed by US bankruptcy judge Sean H. Lane in New York. These creditors also kicked $350 million in equity investments to support the airline’s “future initiatives,” including those designed to upgrade the passenger travel experience.
Spirit continues to serve destinations in the US, Latin America and the Caribbean, but management has acknowledged that networks, fleets and labor have all been reduced as a result of the required cost savings.
Pilot’s expectations
Spirit’s organized pilot, along with 164 members last fall and another 194 Farrow in January, issued a statement suggesting that the ranks would be hit hard in the process and would be held responsible for future management.
“The financial restructuring process is now complete, but restoring trust in the workforce must be an immediate priority for management,” the group said in a statement released by the Air Line Pilots Association. “Spirit Pilot is the backbone of this airline and is dedicated to moving forward this operation despite recent past turbulence. As Spirit looks ahead, management expects to focus on long-term stability. We will honor the collective bargaining agreement, invest in our people and provide a clear vision for the growth of our fleet and network.”
Meanwhile, shareholders before Chapter 11 had their shares cancelled.
The newly issued shares held by the new owners are “expected to trade in the over-the-counter market,” the airline said. These shares are expected to be relisted on stock exchanges that will be identified later.
Original issue: March 12, 2025, 6:10pm EDT
