Spirit Airlines will remain an independent carrier after exiting bankruptcy with a new plan for an “enhanced guest experience.”
Spirit Airlines has exited bankruptcy standing on their own feet, without the help of a merger with fellow ultra-low-cost-carrier Frontier Airlines.
The carrier announced they exited from Chapter 11 protection on Wednesday, March 12, 2025, with a financial restructure package.
Restructuring Includes $795 Million of Funded Debt, $350 Million Equity Investment
To exit out of Chapter 11, Spirit completed a “consensual, deleveraging transaction that equitizes approximately $795 million of funded debt.” The move reduces the airline’s debt and gives them “more financial flexibility” as they continue to operate.
In addition, investors have infused Spirit with $350 million in equity investments towards the airline’s future initiatives. Leaders for the airline say that money will go towards providing “guest with enhanced travel experiences and greater value.” Spirit’s common stock was cancelled, with new shares issued to the current investors. While the carrier will continue to trade in the over-the-counter marketplace, the airline intends to go back to offering stock on a major exchange “as soon as reasonably practicable.”
The board of directors will add six new members, all of which have “significant industry and financial leadership experience,” according to the airline. For their part in keeping Spirit afloat, chief executive Ted Christie and his leadership team will remain in charge of the company.
“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,” Christie said in a press release. “Today, we’re moving forward with our strategy to redefine low-fare travel with our new, high-value travel options.”
Sprit’s reorganization comes despite merger interest from at least two airlines. The carrier previously had an agreement to merge with JetBlue before it was broken up in federal court, followed by discussions with Frontier Airlines for a second attempt to come together. Spirit rejected Frontier’s advances to continue operating on their own.
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