Spirit Airlines reaches deal to emerge from bankruptcy, avoiding closure threat
CNN • • general
Key Points:
- Spirit Airlines has reached an agreement with creditors to emerge from bankruptcy later this spring or early summer, allowing the budget carrier to continue operating as a smaller company.
- The airline, which filed its second bankruptcy last year due to ongoing losses worsened by shifting travel demand, plans to operate with significantly reduced flights and seats, about 40% fewer than pre-bankruptcy levels.
- Spirit has sold aircraft and gates and cut staff to raise cash and reduce debt, positioning itself as a leaner competitor focused on delivering low fares to American consumers.
- Despite financial struggles, Spirit will remain an independent carrier, having twice previously agreed to be acquired but with deals falling through, including a failed merger with Frontier Airlines in 2022.
