They made a comeback.
Spirit Airlines has successfully emerged from Chapter 11 bankruptcy after completing a financial restructuring that has substantially reduced its debt and improved its financial position, according to a statement released on March 12.
The ultra-low-cost carrier revealed it has converted around $795 million of funded debt into equity and secured a $350 million investment from existing shareholders. This move is designed to support the airline’s long-term financial health and facilitate improvements to its travel services.
The restructuring plan, which received strong support from Spirit’s loyalty members and convertible noteholders, was approved by the U.S. Bankruptcy Court for the Southern District of New York. With the process now complete, Spirit has a streamlined balance sheet and greater financial flexibility moving forward.
Ted Christie, Spirit’s President and CEO, expressed confidence in the airline’s future.
“We are excited to complete this restructuring and emerge in a stronger financial position, enabling us to continue our transformation and invest in enhancing the guest experience,” Christie said. “Throughout this process, we’ve made significant strides in improving our product offerings while focusing on returning to profitability and positioning Spirit for long-term success.”
Spirit’s new board of directors includes several industry experts, alongside Christie, to guide the company through its restructuring. As part of the process, Spirit canceled its previous common stock and issued new shares, which are now held by the company’s new owners. These shares are expected to trade “over the counter,” with plans to relist them on a stock exchange soon.
Spirit filed for Chapter 11 bankruptcy protection in November 2024 due to mounting financial challenges. The airline faced stiff competition from larger carriers with lower fares, operational setbacks such as grounded planes from engine issues, and rising labor costs.
Before the bankruptcy filing, Spirit had also dealt with failed merger attempts, including a blocked deal with JetBlue Airways due to antitrust concerns, as well as a rejected takeover offer from Frontier Airlines last month. Despite these difficulties, Spirit continued to operate flights during the bankruptcy proceedings, assuring customers that tickets, credits, and loyalty points would remain valid and that the airline would continue its commitment to low-cost travel.
With a more solid financial footing, Spirit plans to focus on enhancing the customer experience while maintaining its signature low-fare model. The airline serves destinations across the U.S., Latin America, and the Caribbean, operating a fleet that is among the youngest and most fuel-efficient in the industry.
