Spirit Airlines execs get millions in bonuses after agreeing to stay through its 2nd bankruptcy in a year

"Four executives at the struggling Spirit Airlines have been paid bonuses of over $1 million to stick around as it undergoes bankruptcy proceedings for the second time in less than a year. The airline disclosed the agreements in a filing with the Securities and Exchange Commission on Friday, the same day it filed for bankruptcy. Spirit first filed for Chapter 11 bankruptcy in November 2024, exiting that process in March."

"The latest Department of Transportation statistics, from June, say that the airline has just over 10,000 employees. Some flight attendants could be paid less than $30,000 a year, around 1% of the CEO's bonus. That's based on hourly pay starting at $22.51 for cabin crew in their first six months on the job, and a monthly minimum guarantee of 72 hours of work, per their union contract."

Spirit Airlines paid four executives retention bonuses of more than $1 million each amid a Chapter 11 filing. The CEO, Dave Davis, received $2.9 million; CFO Frederick Cromer received just under $1.2 million; general counsel Thomas Canfield and COO John Bendoraitis received about $1.1 million each. The payments were disclosed in an SEC filing on the same day Spirit filed for Chapter 11 for the second time in 10 months. The CEO's retention award must be repaid if he leaves within a year or within 90 days of the company exiting bankruptcy. Spirit's share price fell roughly 45% to $0.66. The airline employs just over 10,000 people. Some flight attendants earn starting pay of $22.51 an hour with a 72-hour monthly guarantee, which can amount to under $30,000 annually in their first six months, rising with years of service.

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