Spirit Airlines Issues Open Letter to All Guests

Rhea-AI Summary

Spirit Airlines (NYSE American: FLYY) has announced its voluntary entry into Chapter 11 bankruptcy protection to restructure its business while maintaining normal operations. The airline emphasizes that this court-supervised process is aimed at building a stronger foundation for its future, noting that many major U.S. airlines have previously used this approach successfully.

During the restructuring, Spirit confirms that flights will continue operating normally, and customers can still use their tickets, credits, loyalty points, and Saver$ Club benefits. The airline has established a dedicated restructuring website and information line for stakeholders seeking additional details about the process.

Positive

• Company continues normal flight operations during restructuring
• All customer tickets, credits, and loyalty points remain valid
• Restructuring process allows for business improvement while maintaining operations
• Court supervision provides organized framework for financial reorganization

Negative

• Entry into Chapter 11 bankruptcy indicates significant financial distress
• Restructuring process may create uncertainty for stakeholders
• Potential for changes to company structure and operations
• Risk of impact on long-term growth and market position

Insights

Bankruptcy Law Expert

Spirit Airlines enters Chapter 11 bankruptcy to restructure while maintaining normal operations, following pattern of other major airlines seeking financial stability.

Spirit Aviation Holdings has voluntarily filed for Chapter 11 bankruptcy protection, a significant restructuring move that allows the airline to reorganize its financial obligations while continuing day-to-day operations. This strategic decision follows a pattern seen across the airline industry, where virtually every major U.S. carrier has utilized similar bankruptcy protections at some point to address financial challenges.

The filing is clearly positioned as a proactive restructuring step rather than a cessation of business. Spirit emphasizes continuity for customers - flights will operate normally, existing tickets remain valid, and loyalty programs continue unchanged. This approach is typical of Chapter 11 proceedings, which are designed specifically to give financially distressed companies breathing room to reorganize while maintaining operations.

For context, bankruptcy doesn't necessarily indicate business failure in the airline industry. Companies like United, Delta, and American Airlines have all successfully emerged from Chapter 11 proceedings as stronger entities. The court-supervised process will likely involve renegotiating debt terms, addressing aircraft leases, and potentially making operational changes to improve profitability.

Spirit has created dedicated information channels through their restructuring website and information line, which is standard practice to maintain transparency with stakeholders during bankruptcy proceedings. These resources will provide court filings and ongoing updates as the restructuring progresses through the bankruptcy court system.

DANIA BEACH, Fla., Aug. 29, 2025 /PRNewswire/ -- Spirit Aviation Holdings, Inc. (NYSE American: FLYY), parent company of Spirit Airlines, LLC ("Spirit" or the "Company"), today issued the following open letter to all Spirit Guests:

Today, Spirit took a proactive step to build a stronger foundation and future for our company. We have voluntarily entered the Chapter 11 restructuring process to ensure the long-term success of our airline. Chapter 11 is a court-supervised legal process that allows companies to restructure their businesses while continuing operations. Virtually every major U.S. airline has used these tools to improve their businesses and position them for long-term success.

The most important thing to know is that Spirit continues to operate and offer high-value travel options. This means you can continue to book and travel with Spirit, and we want to assure you that: 

• Our flights continue to operate normally.
• You can use tickets, credits and loyalty points.
• You can continue to benefit from our Free Spirit loyalty program, Saver$ Club perks and credit card terms.
• Our Team Members remain focused on offering you a safe journey, with excellent service and an elevated experience.

For more information about our financial restructuring, please visit www.spiritrestructuring.com.

Thank you for choosing Spirit for your travel needs. As always, we remain committed to delivering a safe, reliable operation and look forward to welcoming you on board again soon.

Additional Information

The Company has created a dedicated website about its restructuring process at www.spiritrestructuring.com. Additional information about the Company's Chapter 11 case, including access to Court filings and other documents related to the restructuring process, is available at https://dm.epiq11.com/SpiritAirlines or by calling Spirit's restructuring information line at (855) 952-6606 (U.S. toll free) or +1 (971) 715-2831 (international).

About Spirit Airlines

Spirit Airlines (NYSE American: FLYY) is committed to safely delivering the best value in the sky by offering an enhanced travel experience with flexible, affordable options. Spirit serves destinations throughout the United States, Latin America and the Caribbean with its all-Airbus Fit Fleet®, one of the youngest and most fuel-efficient fleets in the U.S. Discover elevated travel options with exceptional value at spirit.com.

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SOURCE Spirit Airlines

FAQ

What happens to Spirit Airlines (FLYY) tickets during Chapter 11 restructuring?

Spirit Airlines confirms that all flights continue to operate normally and customers can use their existing tickets, credits, and loyalty points without disruption.

Will Spirit Airlines continue flying during bankruptcy?

Yes, Spirit Airlines will continue normal flight operations during the Chapter 11 restructuring process, maintaining its regular service and schedule.

What does Chapter 11 bankruptcy mean for Spirit Airlines (FLYY)?

Chapter 11 is a court-supervised restructuring process that allows Spirit Airlines to reorganize its business while continuing operations, aiming to build a stronger financial foundation.

Are Spirit Airlines Free Spirit points still valid after bankruptcy filing?

Yes, Spirit Airlines confirms that Free Spirit loyalty program points, Saver$ Club perks, and credit card terms remain valid during the restructuring process.

How can Spirit Airlines customers get information about the restructuring?

Customers can visit www.spiritrestructuring.com or call the restructuring information line at (855) 952-6606 (U.S.) or +1 (971) 715-2831 (international).