BY Fraser Tennant
With significantly less debt and greater financial flexibility, US carrier Spirit Airlines has emerged from Chapter 11 bankruptcy having completed its financial restructuring – a stronger company better positioned for long-term success.
As part of the restructuring, Spirit received a $350m equity investment from existing investors to support the company’s future initiatives, including investments to provide its customers with enhanced travel experiences and greater value.
The Florida-based airline filed for bankruptcy protection in November 2024, after years of losses, failed merger attempts and heavy debt levels. Reporting a net loss of $1.2bn in 2024, Spirit Airlines was the first major US carrier to file for Chapter 11 since 2011.
“We are pleased to complete our streamlined restructuring and emerge in a stronger financial position to continue our transformation and investments,” said Ted Christie, president and chief executive of Spirit Airlines. “Throughout this process, we have continued to make meaningful progress enhancing our product offerings, while also focusing on returning to profitability and positioning our airline for long-term success.”
As part of its turnaround strategy, the company has said it would shift its focus away from price-conscious customers to more affluent travellers, in a move it estimates would generate 13 percent more revenue per passenger. In a further bid to attract customers, the airline plans to redesign its loyalty programme and enter into alliances with other carriers.
Following emergence from Chapter 11, Spirit will continue to be led by Mr Christie and its existing executive team. In addition, the company also emerges with a reconstituted board of directors.
A leading low-fare carrier committed to delivering an enhanced travel experience with flexible, affordable options, Spirit serves destinations throughout the US, Latin America and the Caribbean. It is one of the youngest and most fuel-efficient fleets in the US.
“Despite the challenges we have faced as an organisation, we are emerging as a stronger and more focused airline,” concluded Mr Christie. “On behalf of the executive team, I would also like to thank our outgoing board members for their contributions and invaluable service to our airline."
News: Spirit Airlines targets more affluent travelers after emerging from bankruptcy