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Spirit Aviation Holdings, Inc. (the parent company of Spirit Airlines) issued an open letter to its passengers today to announce that the company has voluntarily entered the Chapter 11 restructuring process once again. The move is designed to secure the airline’s long-term future while ensuring that its operations continue without disruption. This is the second time in 12 months that Spirit has sought Chapter 11 protections (last time it exited in only four months).
Continuing to Serve Guests Without Interruption
Spirit emphasized that its flights will continue to operate as scheduled and that passengers can book and travel with confidence. All existing tickets, travel credits, and loyalty points remain valid. Spirit’s Free Spirit® loyalty program, Saver$ Club® perks, and Spirit credit card terms remain unchanged.
Why Chapter 11?
Chapter 11 is a court-supervised legal process that allows companies to restructure their finances and strengthen their businesses while continuing day-to-day operations. Spirit noted that virtually every major US airline has used similar restructuring tools in the past to position themselves for long-term success. By entering Chapter 11 bankruptcy proactively, Spirit aims to build a stronger financial foundation and enhance its ability to continue providing affordable and reliable travel.
Spirit’s Commitment to Customers
Spirit assured travelers that its commitment to providing high-value, low-cost travel remains unchanged. The company reinforced that its employees are dedicated to delivering safe, reliable service while the restructuring process unfolds. Guests seeking more information can visit www.spiritrestructuring.com. Additional case details, including court filings and related documents, are available here.
Dave Davis, President and Chief Executive Officer, said:
Since emerging from our previous restructuring, which was targeted exclusively on reducing Spirit’s funded debt and raising equity capital, it has become clear that there is much more work to be done and many more tools are available to best position Spirit for the future. After thoroughly evaluating our options and considering recent events and the market pressures facing our industry, our Board of Directors decided that a court-supervised process is the best path forward to make the changes needed to ensure our long-term success. We have evaluated every corner of our business and are proceeding with a comprehensive approach in which we will be far more strategic about our fleet, markets and opportunities in order to best serve our Guests, Team Members and other stakeholders. As we move forward, Guests can continue to rely on Spirit to provide high-value travel options and connect them with the people and places that matter most. On behalf of our Board and leadership, I want to thank our Team Members for their continued dedication, resilience and commitment to delivering a safe, reliable operation and excellent service to our Guests.”
While it restructures, Spirit says that it plans to:
- Redesign its network: Spirit will focus on key markets to provide more destinations, frequencies, and connectivity in its focus cities.
- Optimize its fleet size: Spirit will rightsize its fleet to match capacity. This will significantly lower Spirit’s debt and lease obligations and is projected to generate hundreds of millions of dollars in annual operating savings.
- Address its cost structure: Spirit will reinforce efforts to build on its industry-leading cost model by pursuing further efficiencies across the business.
- Effectively compete and meet evolving consumer preferences with its three travel options: Spirit First, Premium Economy, and Value
Anthony’s Take: It’s sad to see Spirit continue to struggle. Personally, I like the airline and its First Class quite a bit. It gets me where I need to go and is often way cheaper than Delta, United, or American. I hope this works, but we’ll have to wait and see how this shakes out.
(Image Credits: Spirit.)
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Advertiser & Editorial Disclosure: The Bulkhead Seat earns an affiliate commission for anyone approved through the links above This compensation may impact how and where links appear on this site. We work to provide the best publicly available offers to our readers. We frequently update them, but this site does not include all available offers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed, or approved by any of these entities.
