Spirit Airlines prepares for post-bankruptcy future under new ownership

Ted Christie, Spirit's President and CEO, stated: "We will emerge as a stronger airline with the financial flexibility to continue providing Guests with enhanced travel experiences and greater value."

Facing around $1.6 billion in debts and declining demand due to competition from budget fares offered by rivals, Spirit plans to enhance passenger experience with a new premium economy product, seat upgrades, free WiFi, complimentary refreshments, among other improvements.

The carrier aims to transform key areas by increasing less-than-daily routes, removing unproductive markets, and reducing capacity during off-peak periods. Christie highlighted "virtually unanimous support from bondholders" for their reorganization process.

Spirit has decided against merging with Frontier Airlines despite previous acquisition attempts by Frontier in 2022. JetBlue initially secured a deal with Spirit but faced antitrust challenges leading to its cancellation. Frontier renewed merger attempts but was rejected by Spirit this month.

The airline plans cost-cutting measures including fleet size reduction and job cuts affecting around 200 employees primarily in administrative roles. Christie emphasized that operations would remain unaffected during the ongoing bankruptcy process as Spirit continues flying to about 80 airports.

Currently operating nearly 200 Airbus A320 and A321 aircraft models including both ceo and neo variants; last year Spirit announced selling 23 planes for $519 million—nearly 10% of its total fleet—and grapples with issues related to Pratt & Whitney's GTF engines causing significant grounding for inspections or overhauls.