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Spirit Airlines Exits Bankruptcy with Debt Restructuring and New Growth Strategy

The budget carrier aims to redefine low-cost travel after converting debt to equity, securing new investments, and rejecting merger bids.

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 commercial airliner prepares to land at San Diego International Airport in San Diego, California, U.S., January 18, 2024.
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 formally emerged from Chapter 11 bankruptcy after restructuring $795 million in debt into equity and securing a $350 million equity investment from existing investors.
  • The airline plans to relist its shares on the stock market, though shares held by pre-bankruptcy shareholders have been canceled.
  • Spirit rejected multiple acquisition offers from Frontier Airlines and JetBlue, opting to focus on its standalone recovery and growth strategy.
  • The carrier aims to enhance its travel offerings, including new fare bundles with amenities like priority boarding, larger seats, and free baggage options.
  • Despite recent challenges, including reduced workforce and network size, Spirit's leadership remains committed to long-term profitability and improved customer experiences.