"Spirit will emerge as a strong, leaner competitor that is positioned to profitably deliver the value American consumers expect at a price they want to pay. The early-stage agreement would help Spirit finalize changes to its fleet, route network and cost structure as it works toward emerging as a new Spirit - a smaller, leaner carrier still focused on offering low fares but with more options like premium economy and its version of first-class seating with more legroom."
"The budget carrier filed for fresh bankruptcy protection in August, months after emerging from a Chapter 11 reorganization. Davis said at the time that the airline's previous Chapter 11 petition focused on reducing debt and raising capital, but after exiting that process last March, it had become clear that there is much more work to be done and many more tools are available to best position Spirit for the future."
"Low-cost carriers like Spirit have been under pressure by bigger airlines, which have rolled out their own low-cost offerings. Known for its bright yellow planes and no-frills service, Spirit has had a rough ride since the COVID-19 pandemic amid rising operation costs and its mounting debt. By the time of its first Chapter 11 filing in November 2024, Spirit had lost more than $2.5 billion since the start of 2020."
Spirit Airlines' parent company anticipates exiting Chapter 11 bankruptcy in late spring or early summer following a preliminary agreement with lenders and secured creditors. The restructuring will reshape the airline into a smaller, leaner operation while maintaining its low-fare focus and introducing premium economy and first-class seating options. CEO Dave Davis stated Spirit will emerge as a competitive carrier delivering value at affordable prices. The airline filed for bankruptcy protection in August after emerging from a previous Chapter 11 reorganization in March. Following the filing, Spirit suspended operations in a dozen U.S. cities and furloughed 1,800 flight attendants. Low-cost carriers face intense competition from larger airlines offering their own budget options. Spirit has struggled since the COVID-19 pandemic with rising operational costs and accumulated debt exceeding $2.5 billion in losses since 2020.
Read at Fortune
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