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Spirit Airlines Exits Bankruptcy, Pursues Standalone Revamp

The budget carrier has reduced debt, secured new investments, and is shifting its strategy to attract higher-spending travelers.

FILE -Spirit Airlines planes parked at the closed George Bush Intercontinental Airport, Jan. 21, 2025, in Houston. (AP Photo/David J. Phillip, File)
A Spirit Airlines plane takes off within view from the balcony in the support center office building at the new Spirit Airlines Central Campus in Dania Beach on Thursday, April 18, 2024. The campus spans more than 11 acres and features four buildings, including a support center with offices, an amenity building, a new crew training facility built for hands-on experience in flight simulators, and a corporate housing facility. (Mike Stocker/South Florida Sun Sentinel)
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Overview

  • Spirit Airlines has emerged from Chapter 11 bankruptcy after converting $795 million in debt into equity and securing a $350 million equity investment from existing investors.
  • The airline's restructuring plan was approved by the U.S. Bankruptcy Court, with strong support from its creditors, and aims to position Spirit for long-term profitability.
  • Spirit rejected multiple takeover bids from Frontier Airlines, reaffirming its commitment to an independent turnaround strategy.
  • The airline is shifting its focus from price-sensitive travelers to affluent customers, introducing tiered pricing with bundled amenities such as larger seats, priority boarding, and internet access.
  • Spirit plans to relist its newly issued shares on a stock exchange, though they will initially trade over-the-counter after the cancellation of its previous common stock.