Spirit ‘stronger’ after shedding $795m debt
March 13, 2025
Spirit Airlines has emerged “stronger” from its financial restructuring, completing a significant deleveraging process that has reduced its funded debt by approximately $795 million.
The airline is now in a better financial position with greater flexibility to support its long-term growth and investment in customer experience, the Miami, Florida based operator said.
As part of the restructuring, Spirit received a $350 million equity investment from its existing investors to fund future initiatives.
The company’s Plan of Reorganization was approved by the United States Bankruptcy Court for the Southern District of New York.
Ted Christie will continue as president and CEO. He said: “We’re pleased to complete our streamlined restructuring and emerge in a stronger financial position to continue our transformation and investments in the guest experience.
“Throughout this process, we’ve continued to make meaningful progress enhancing our product offerings, while also focusing on returning to profitability and positioning our airline for long-term success.
“Today, we’re moving forward with our strategy to redefine low-fare travel with our new, high-value travel options.”
The US low-cost carrier first filed for Chapter 11 bankruptcy protection on 18 November 2024, being the first US airline to do so since American Airlines’ Chapter 11 filing in 2011.
Having failed to record a full-year profit since the Covid-19 pandemic, Spirit had been facing mounting losses; noting losses of around $360 million in the first half of 2024.
Two unsuccessful merger attempts (the first with Frontier Airlines and the second with JetBlue Airways) also failed to turn the Florida-based carrier’s fortunes around.
