Spirit has reached a tentative agreement with its creditors that will allow the budget airline to emerge from bankruptcy by the late spring or early summer, officials announced Tuesday.
The deal provides Spirit with the “financial support needed to finalize its restructuring and complete the remaining changes necessary to optimize the company’s fleet, network and cost structure,” according to a statement.
The “new Spirit” will exit bankruptcy in a much stronger position, Spirit leaders said, with lower costs, a right-sized fleet, increased aircraft utilization rates, less off-peak flying, and expanded premium products, such as Spirit First and Premium Economy.
“This agreement in principle is the result of months of hard work and allows Spirit to move toward completing its transformation,” said Spirit President and CEO Dave Davis. “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 Wall Street Journal reported earlier Tuesday that Spirit will present further details to the court overseeing its bankruptcy. The airline is expected to shrink to a much smaller version of its former self, with considerably fewer aircraft and routes, the newspaper said.
Spirit’s statement did not mention a merger or sale. The carrier is believed to have discussed the prospect of a sale with fellow discount carrier Frontier and investment company Castlelake, but no agreements were ever announced.
Spirit filed for bankruptcy protection in August in the face of climbing costs and ballooning debt. It has laid off corporate staff, furloughed pilots and flight attendants, canceled routes, pulled out of certain markets, and sold off aircraft in a bid to reduce expenses and show viability to its lenders, who have provided millions of dollars in support through a revolving credit facility.
This is the airline’s second stint in bankruptcy. It emerged from its first restructuring in March 2025.
Some U.S. airlines reportedly planned to redeploy resources in and around Florida if Spirit ultimately collapsed. Its critics maintained that multiple ultra-low-cost carriers could not survive in a post-COVID environment of higher costs and supply chain complications.
