Spirit Airlines emerges from bankruptcy after corporate restructuring

"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," Spirit CEO Ted Christie said in a statement announcing the restructuring. "Today, we're moving forward with our strategy to redefine low-fare travel with our new, high-value travel options. "

Spirit's bankruptcy filing last fall came as the airline struggled to find its footing, facing billions in debt, a protracted ordeal managing an engine recall and changes in the business environment that left the airline at a disadvantage to its mainline competitors. U.S. airlines have become more reliant on premium revenue since the pandemic began, while traditional carriers also have learned to master the "basic economy" concept, somewhat neutralizing the competitive advantage that ultra-low-cost airlines like Spirit previously enjoyed.

The airline has tried to stem losses by shrinking its operational footprint, changing its fare product structure and introducing several tiers of premium seating options.

After a federal judge blocked JetBlue's acquisition of Spirit in early 2024, bankruptcy seemed all but inevitable to many analysts and observers. Frontier Airlines made an offer to acquire Spirit in late January suggesting another reorganization option for the troubled carrier; however, Spirit rejected Frontier's offer.