Commences voluntary restructuring course of to implement monetary and operational transformation to revamp community, optimize fleet and realign technique with evolving market
Flights, ticket gross sales, reservations and operations proceed
DANIA BEACH, Fla., Aug. 29, 2025 /PRNewswire/ — Spirit Aviation Holdings, Inc. (NYSE American: FLYY), father or mother firm of Spirit Airways, LLC (“Spirit” or the “Firm”), at the moment introduced that it’s executing a complete restructuring of the airline to place the enterprise for long-term success. To facilitate the method, the Firm has filed voluntary petitions for Chapter 11 within the U.S. Chapter Court docket for the Southern District of New York (the “Court docket”).
Spirit intends to make use of the Chapter 11 course of to implement the broad adjustments essential to transition the Firm for a sustainable future and place it to ship the very best worth within the sky for years to come back. The Firm has been actively engaged with sure of its largest lessors, secured noteholders and key stakeholders over the previous few months as it really works to refine its path ahead. The Chapter 11 course of will present Spirit the instruments, time and suppleness to proceed ongoing discussions with all of its lessors, monetary collectors and different events to implement a monetary and operational transformation of the Firm. The Firm can be working productively with its secured noteholders, together with with respect to potential financing which will grow to be vital later within the proceedings.
The Firm is submitting customary motions with the Court docket to allow it to conduct enterprise as regular throughout the restructuring course of. Visitors can proceed to ebook, journey and use tickets, credit and loyalty factors. Wages and advantages will proceed to be paid and honored for these employed by the Firm, together with contractors. Spirit intends to pay distributors and suppliers for items and providers supplied on or after the submitting date within the strange course.
“Since rising from our earlier restructuring, which was focused completely on lowering Spirit’s funded debt and elevating fairness capital, it has grow to be clear that there’s way more work to be performed and plenty of extra instruments can be found to finest place Spirit for the long run,” mentioned Dave Davis, President and Chief Government Officer. “After completely evaluating our choices and contemplating latest occasions and the market pressures dealing with our {industry}, our Board of Administrators determined {that a} court-supervised course of is the very best path ahead to make the adjustments wanted to make sure our long-term success. We’ve evaluated each nook of our enterprise and are continuing with a complete strategy wherein we might be way more strategic about our fleet, markets and alternatives with a view to finest serve our Visitors, Group Members and different stakeholders.”
“As we transfer ahead, Visitors can proceed to depend on Spirit to supply high-value journey choices and join them with the individuals and locations that matter most,” Davis continued. “On behalf of our Board and management, I wish to thank our Group Members for his or her continued dedication, resilience and dedication to delivering a secure, dependable operation and wonderful service to our Visitors.”
By means of the restructuring course of, the Firm expects to double down on its efforts to:
Redesign its community: Spirit will focus its flying on key markets to supply extra locations, frequencies and enhanced connectivity in its focus cities. The Firm can even cut back its presence in sure markets.
Optimize its fleet measurement: Spirit will rightsize its fleet to match capability with worthwhile demand in keeping with the redesigned community. This may considerably decrease Spirit’s debt and lease obligations and is projected to generate tons of of hundreds of thousands of {dollars} in annual working financial savings.
Deal with its price construction: Spirit will reinforce efforts to construct on its industry-leading price mannequin by pursuing additional efficiencies throughout the enterprise.
Successfully compete and meet evolving shopper preferences with its three journey choices – Spirit First, Premium Financial system and Worth: Spirit will take full benefit of its decrease prices to supply shoppers extra of what they need – worth at each value level. The airline will increase the alternatives for vacationers to decide on premium choices whereas remaining true to its unique mission of creating journey extra accessible for everybody.
Spirit expects to be delisted from the NYSE American Inventory Change within the close to time period because of the Chapter 11 submitting, and the Firm expects that its widespread inventory will proceed to commerce within the over-the-counter market via the Chapter 11 course of. The shares are anticipated to be cancelled and haven’t any worth as a part of Spirit’s restructuring.
