Ultra-low-Cost Carrier Spirit Airlines has completed the Chapter 11 bankruptcy process, with CEO Ted Christie committing to focus on continuing upgrades to airline products for the coming months.
Spirit said on March 13 that the restructuring plan was approved by the US Bankruptcy Court for the Southern District of New York and received “overwhelming support from the vast majority” of company stakeholders.
Christie continues to lead the company into a post-bankruptcy era, parent company Psychiatric Aviation Holdings confirms.
“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, he says. “Despite the challenges we have faced as an organization, we are emerging as a stronger, more focused airline.”
In a series of moves reflected in other low-cost carriers, Spirit has made luxury bids in new fare bundles and cabin classes over the last few months, x most add-on fees – previously a major revenue stream.
Spirit filed for bankruptcy in November after a quarterly series of performances. Airline analysts suggest that ULCC has grown its fleet and network too aggressively over the past decade.
Earlier this month, Spirit reported losing more than $1.2 billion in 2024 as it reduced passenger capacity across its network, struck hundreds of pilots and sold more than 20 narrow-sized Airbus jets.
This follows Florida-based ULCC's $448 million loss in 2023 and $554 million losses the previous year.
“The increase in pre-tax losses was driven primarily by increased operating expenses,” Spirit said. Spirit reduced revenues from trouble in 2024, citing high “restructuring costs.”
However, carriers plan to move forward with significantly less debt. As part of its financial restructuring plan, Spirit eliminated nearly $800 million in debt, received $350 million in equity injections from existing investors, and issued $840 million in new debt to bondholders.
Additionally, the Spirit board was “restructured” with six directors with “critical industry experience”: Robert Milton, David Siegel, Timothy Bernroll, Eugene Davis, Andrea Fisher Newman and Ladha Tilton.
With the advent of spirit, all of the great stocks in the company were “cancelled” and wiped out all shareholder value. Spirit was selected by the New York Stock Exchange in December after bankruptcy the previous month.
“The company expects to relist the shares on the stock exchange as soon as reasonably feasible after the effective date of its Spirit reorganization plan,” the company says.
In the process of Chapter 11, Spirit rejected repeated acquisition offers from rival Disc Counter Frontier Airlines.
Spirit has been arguing for months that its standalone revival plan will allow it to compete better in the low-cost US segment.
Ultra-low-Cost Carrier Spirit Airlines has completed the Chapter 11 bankruptcy process and is committed to Chief Executive Ted Christie to focus on continuing upgrades to the airline's products.
