Spirit Airlines to Survive Bankruptcy By Summer

Spirit Airlines' parent company says the company expects to exit Chapter 11 bankruptcy by summer. After the budget company struck a deal with its lenders and secured creditors to help provide support for restructuring. The company will be able to avoid liquidation and stay in play after filing in 2025.

The budget carrier filed for Chapter 11 bankruptcy protection in August 2025 for the second time. This filing came less than a year after their first filing. The company is working to stay in business despite its numerous challenges.

As of August, when they filed, the company had about 25,000 direct employees and independent contractors. This includes pilots, flight attendants, and aircraft maintenance technicians. Now, the company will change its fleet, route network, and cost structures to help create "a new Spirit."

Spirit Airlines is still focused on offering low fares, but with more options to help with costs. The company will have smaller, leaner carriers with new options like premium economy and its version of "first class" seating.

“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,” said CEO Dave Davis.

On Tuesday, the company confirmed its efforts to emerge form bakkruptcy. "The agreement in principle will provide 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," the airline said in a statement.

By the summer, customers can expect to begin seeing a brand new Spirit Airlines era.