By Tiffany Williams –
DANIA BEACH, FL – Spirit Aviation Holdings, Inc. (NYSE American: FLYY), the parent company of Spirit Airlines, LLC, announced today that it has voluntarily filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York. The filing is part of a comprehensive restructuring plan designed to ensure the airline’s long-term success and sustainability.
The Chapter 11 process will allow Spirit to implement broad operational and financial changes while continuing normal business operations. The airline emphasized that:
- Flights will continue to operate as scheduled.
- Tickets, credits, and loyalty points remain valid.
- Wages and benefits for employees and contractors will continue.
- Vendors and suppliers will be paid in the ordinary course of business.
Restructuring Goals
Through Chapter 11, Spirit aims to:
- Redesign its network: Focus on key markets to provide more destinations, increased flight frequency, and improved connectivity in focus cities, while reducing presence in less profitable markets.
- Optimize fleet size: Align fleet capacity with profitable demand, reducing debt and lease obligations, and generating significant annual operating savings.
- Address cost structure: Pursue efficiencies across the business to reinforce Spirit’s low-cost operating model.
- Meet evolving consumer preferences: Expand Spirit First, Premium Economy, and Value travel options to provide more choices while maintaining affordability.
As a result of the Chapter 11 filing, Spirit expects to be delisted from the NYSE American Stock Exchange. Common stock will continue trading over-the-counter during the restructuring process but is expected to be canceled and hold no value upon completion.
“After evaluating our options and market pressures, our Board determined that a court-supervised process is the best path forward to ensure long-term success,” said Dave Davis, President and CEO of Spirit Airlines. “Guests can continue to rely on Spirit for high-value travel, and we remain committed to providing safe, reliable service throughout this process. We thank our Team Members for their dedication and resilience.”
Spirit has created a dedicated website for stakeholders: www.spiritrestructuring.com. Court filings and documents related to the restructuring are available at https://dm.epiq11.com/SpiritAirlines or via the restructuring information line at 855-952-6606 (U.S.) or +1-971-715-2831 (international).
Spirit Airlines operates an all-Airbus Fit Fleet®, one of the youngest and most fuel-efficient fleets in the U.S., serving destinations across the United States, Latin America, and the Caribbean. For more information, visit spirit.com