The American airline Spirit Airlines, known for its ultra-low-cost business model, has today taken a crucial step towards securing its long-term financial stability. The management of Spirit Aviation Holdings, Inc. announced that it has voluntarily initiated a restructuring process under Chapter 11 of the U.S. Bankruptcy Code. This decision, as they state, is a proactive move aimed at building a stronger foundation for the company's future. It is important to emphasize that Chapter 11 is not a liquidation, but a court-supervised legal process that allows companies to reorganize their business, debts, and assets while continuing regular operations. Passengers and the public have been informed through an open letter detailing what this step means for them.

The executive team at Spirit Airlines emphasizes that this move should not be seen as an end, but as a new beginning and a strategic tool for financial recovery. Official communications stress that almost all major U.S. air carriers have used the Chapter 11 mechanism at some point in their history to optimize their operations, reduce debt, and adapt to market changes, after which they emerged from the process stronger and more competitive. Spirit thus joins the list of companies using this legal framework to ensure a sustainable future.

What does Chapter 11 mean for passengers?

For the millions of passengers who use Spirit Airlines' services, the most important news is that business continues without any interruption. The company has clearly stated that the restructuring will not affect daily operations. All flights will continue to operate according to the existing schedule, and passengers can plan and book their travel without worry. In an open letter to its customers, Spirit Airlines has clarified the key points in detail:

• Flights are operating normally: The flight schedule remains unchanged. All booked tickets are valid, and the reservation system is fully operational for future travel.


• The value of tickets, credits, and points remains intact: Passengers can use existing airline tickets, vouchers, or credits issued by the company without any restrictions. The Free Spirit loyalty program continues to function as before, meaning points can still be collected and used to purchase tickets and additional services.


• Loyalty program and credit card benefits: Members of the Saver$ Club retain all their benefits, and the terms of use for partner credit cards remain unchanged. All benefits associated with these programs remain in effect.


• Commitment to safety and service: Spirit Airlines teams, from the flight crews to the airport staff, remain fully focused on providing safe and quality service. The company emphasizes that passenger safety remains its absolute priority.

To ensure full transparency, Spirit has also set up a dedicated website, www.spiritrestructuring.com, where all relevant information about the financial restructuring process will be regularly published. Additionally, a dedicated information center is available by phone for all inquiries.

Background of the decision: Why did Spirit Airlines seek protection?

The decision to file for Chapter 11 was not sudden. It is the result of a series of financial and operational challenges the company has faced in recent years. Although Spirit has long been synonymous with affordable travel, a combination of external and internal factors created pressure on its liquidity and profitability. One of the key blows was the failed merger with competitor JetBlue. The planned $3.8 billion acquisition was intended to create the fifth-largest air carrier in the U.S. and provide Spirit with necessary stability. However, U.S. regulatory agencies blocked the merger due to concerns about reduced market competition and potential price increases for consumers. After a federal judge ruled against the merger, both companies abandoned the deal in March of this year, leaving Spirit in an extremely difficult position.

Additional pressure was created by unexpected operational problems. A significant portion of Spirit's fleet, which consists exclusively of Airbus aircraft, had to be grounded due to problems with Pratt & Whitney GTF engines. Mandatory inspections and repairs of these engines, which have affected the aviation industry globally, forced Spirit to take dozens of its aircraft out of service. This directly resulted in reduced capacity, flight cancellations, and consequently, a drop in revenue. Combined with rising fuel costs, increased market competition, and accumulated debt, the financial situation became unsustainable without a thorough reorganization.

Restructuring as a common practice in the aviation industry

Aviation industry experts point out that Chapter 11 is a proven mechanism that allows companies to "press pause" and restructure their finances without interrupting business. It is a tool that protects the company from creditors until an agreement on a debt repayment plan is reached and a new, sustainable business strategy is designed. Through this process, Spirit Airlines will seek to reduce its debt, revise aircraft lease agreements, and optimize operating costs to become more agile and profitable in the future.

The history of American aviation is full of examples of successful restructurings. Giants like Delta Air Lines, United Airlines, and American Airlines went through similar processes after major crises, such as the September 11 terrorist attacks or the 2008 global financial crisis. In all these cases, the companies used the protection of Chapter 11 to reorganize, reduce costs, and adapt to new market conditions, and today they are more profitable and stable than ever before. It is this well-trodden path that gives hope that Spirit Airlines will also successfully overcome its current challenges.

The future of business and the ultra-low-cost model

Despite financial difficulties, Spirit Airlines remains committed to its core business model – providing ultra-low-cost fares. This model, known as "à la carte," allows passengers to pay only for the basic transportation service, while all additional services such as baggage, seat selection, or in-flight meals are charged separately. This results in an extremely low initial price, making Spirit an attractive choice for cost-sensitive travelers. Through the restructuring process, the company hopes to strengthen its market position and continue to offer the competitive prices that have become its hallmark.

Spirit Airlines serves numerous destinations across the United States, Latin America, and the Caribbean, using an all-Airbus fleet, which is considered one of the youngest and most fuel-efficient in the U.S. The goal of the restructuring is to ensure that this modern fleet can continue to fly and connect passengers to their destinations at affordable prices. The management has thanked all its customers for their trust and support, emphasizing its ongoing commitment to safe and reliable operations and looks forward to welcoming them on its flights in the future.

All court filings and additional documents related to the restructuring process are publicly available through a specialized platform at https://dm.epiq11.com/SpiritAirlines, ensuring full transparency of the procedure to the public and all interested parties.