Spirit Airlines Reaches Agreement in Principle on Key Terms of Restructuring Support Agreement with Its Secured Creditors
Spirit Aviation Holdings, Inc. • • business
Key Points:
- Spirit Aviation Holdings, parent company of Spirit Airlines, has reached an agreement in principle with its DIP lenders and secured noteholders to support its restructuring efforts under Chapter 11.
- The company aims to emerge from Chapter 11 bankruptcy in late spring or early summer 2026 as a leaner, low-cost carrier with an optimized fleet, network, and cost structure.
- Spirit plans to align its network to peak consumer demand, increase premium offerings like Spirit First and Premium Economy, and enhance loyalty programs while maintaining its position as the industry price leader.
- Post-restructuring, Spirit expects to reduce its debt and lease obligations significantly from $7.4 billion to approximately $2.1 billion, improving its financial strength and cost competitiveness
