Spirit Airlines Reaches New Deal, Expects to Emerge From Bankruptcy as Early as Spring

After teetering on bankruptcy filings dating back to November 2024, Spirit Aviation Holdings, Inc., the parent company of Spirit Airlines LLC, has announced it completed another significant milestone for its restructuring plans.

In a Feb. 24 statement, the financially embattled airline said it reached an accord in principle on the key terms of a restructuring support agreement with its existing debtor-in-possession lenders and secured noteholders. This agreement will give Spirit the financial support it needs to finalize its restructuring and complete the remaining changes needed to optimize its fleet, network, and cost structure.

As a result, Spirit intends to emerge from Chapter 11 in late spring or early summer this year.

“This agreement in principle is the result of months of hard work and allows Spirit to move toward completing its transformation,” Dave Davis, Spirit president and CEO, said in the statement. “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.”

Davis noted that the airline will match its flight routes to the periods of the strongest consumer demands. During peak days, the airline will increase flights, but reduce flights during off-peak flying times. The company also plans to adjust to seasonal demand across its markets.

In addition, Spirit plans to provide more premium choices, including its Spirit First and Premium Economy offerings. By doing so, the airline hopes to maintain its position as the industry price leader, while still focusing on value. Spirit also plans to continue offering guest loyalty programs.

Once it fully emerges from bankruptcy, the company will have reduced its cost structure. It is expected that debt and lease obligations will be reduced from $7.4 billion before the Chapter 11 filing to about $2.1 billion afterward.

“I am grateful to our team members for their dedication and unwavering commitment to our guests throughout our restructuring,” Davis added. “I also want to thank our guests for continuing to choose Spirit to connect them to the people and places that matter most.”

During the completion of the process, customers will still be able to book, travel, and use tickets, credits, and loyalty points.

After originally filing for Chapter 11 in November 2024, Spirit emerged from bankruptcy in March, 2025.  Then, in August 2025, Spirit Aviation Holdings filed voluntary petitions for Chapter 11 again, stating that it needed more time to continue its ongoing discussions with creditors.

Just days before that filing, competitor Frontier Airlines issued a statement committing to being the top low-fare carrier in America’s top 20 metros. It also launched 20 new routes from Dallas; Detroit; Houston; Baltimore; Fort Lauderdale, Florida; and Charlotte, North Carolina, with fares starting as low as $29.

Last September, in response to Spirit’s August Chapter 11 filing, United Airlines announced plans to expand winter flights to 15 warm-weather destinations, including Fort Lauderdale and Orlando, as well as Las Vegas.

Based in Dania Beach, Florida, Spirit Airlines offers budget-friendly travel across the United States, Latin America, and the Caribbean. Passengers typically pay fares plus optional fees for baggage, seats, and refreshments. The airline currently employs more than 10,000 people.