Spirit will continue to shrink its fleet and restructure its route network as it plans its emergence from bankruptcy, officials disclosed on Friday.
The ultra-low-cost carrier made public the first details of the restructuring plan it reached with its largest creditors late last month. Among the key takeaways is a further reduction in Spirit’s fleet, which will shrink to between 76 and 80 jets, mostly Airbus A320s and A321s. This range would leave the budget airline with about one third of the over 200 aircraft it operated at its peak.
The cuts are meant to reduce debt, lease obligations, and aircraft operation and maintenance costs.
Spirit will also continue to restructure its route network. Officials said they will concentrate on proven markets where demand for Spirit’s product remains high, such as Fort Lauderdale and Orlando in Florida, Detroit, and the New York metro area.
Spirit also plans to expand its premium capacity by adding a third row of “Big Front Seats,” and continuing to install Premium Economy seats.
Spirit leadership had hinted at some of the planned changes when the restructuring agreement was first announced in February. That plan was filed with a U.S. bankruptcy court on Friday.
“We are pleased to achieve another milestone that reflects the confidence our lenders and noteholders have in our future, with our plan better positioning Spirit to continue delivering value to American consumers,” Spirit President and CEO Dave Davis said in a news release. “While we still have work to do with other important stakeholders, today’s agreements and filings are very material steps forward toward emergence.”
Spirit has said it expects to emerge from its second stint in bankruptcy by the early summer. By that time, the carrier will have reduced its debt and lease obligations from around $7.4 billion to about $2 billion.
