/U P D A T E -- Spirit Airlines/
Spirit Airlines (NYSE American: FLYY) has initiated voluntary Chapter 11 bankruptcy proceedings to implement a comprehensive financial and operational restructuring. The airline will continue normal operations, with flights, reservations, and loyalty programs remaining active during the process.
The restructuring plan focuses on four key areas: network redesign to enhance connectivity in focus cities, fleet optimization to match capacity with demand, cost structure improvements, and travel options enhancement through Spirit First, Premium Economy, and Value offerings. The company expects to achieve significant annual operating savings through these initiatives.
Spirit's common stock is expected to be delisted from NYSE American and will trade over-the-counter before being cancelled through the restructuring process, ultimately having no value.
Spirit Airlines (NYSE American: FLYY) ha avviato volontariamente una procedura di fallimento ai sensi del Capitolo 11 per attuare una ristrutturazione finanziaria e operativa completa. La compagnia continuerà a operare normalmente: voli, prenotazioni e programmi fedeltà rimarranno attivi durante il processo.
Il piano di ristrutturazione si concentra su quattro ambiti principali: ridefinizione della rete per migliorare la connettività nelle città chiave, ottimizzazione della flotta per allineare la capacità alla domanda, miglioramento della struttura dei costi e potenziamento delle opzioni di viaggio con Spirit First, Premium Economy e le offerte Value. L'azienda prevede di conseguire risparmi operativi annuali significativi grazie a queste iniziative.
Si prevede che le azioni ordinarie di Spirit saranno cancellate dalla quotazione su NYSE American e negoziate in over-the-counter prima di essere annullate nel corso della ristrutturazione, perdendo infine ogni valore.
Spirit Airlines (NYSE American: FLYY) ha iniciado voluntariamente un proceso de bancarrota bajo el Capítulo 11 para llevar a cabo una reestructuración financiera y operativa integral. La aerolínea seguirá operando con normalidad; los vuelos, las reservas y los programas de fidelidad permanecerán activos durante el proceso.
El plan de reestructuración se centra en cuatro áreas clave: rediseño de la red para mejorar la conectividad en ciudades prioritarias, optimización de la flota para ajustar la capacidad a la demanda, mejora de la estructura de costos y ampliación de las opciones de viaje mediante Spirit First, Premium Economy y las ofertas Value. La compañía espera lograr importantes ahorros operativos anuales con estas medidas.
Se espera que las acciones ordinarias de Spirit sean excluidas de cotización en NYSE American y se negocien en el mercado extrabursátil antes de ser canceladas en el marco de la reestructuración, quedando finalmente sin valor.
Spirit Airlines (NYSE American: FLYY)는 포괄적인 재무 및 운영 구조조정을 실행하기 위해 자발적으로 챕터 11 파산보호 절차를 개시했습니다. 항공사는 절차 동안에도 정상 운영을 지속하며 항공편, 예약 및 로열티 프로그램은 계속 유지됩니다.
구조조정 계획은 네 가지 핵심 분야에 중점을 둡니다: 핵심 도시의 연결성을 강화하기 위한 네트워크 재설계, 수요에 맞춰 공급을 조정하는 항공기 편성 최적화, 비용구조 개선, 그리고 Spirit First, Premium Economy 및 Value 상품을 통한 여행 옵션 강화. 회사는 이러한 조치로 연간 상당한 운영비 절감을 달성할 것으로 예상합니다.
Spirit의 보통주는 NYSE American에서 상장폐지될 것으로 예상되며, 구조조정 과정에서 장외시장(OTC)에서 거래된 후 결국 취소되어 가치를 상실하게 됩니다.
Spirit Airlines (NYSE American: FLYY) a volontairement engagé une procédure de faillite au titre du Chapitre 11 afin de mettre en œuvre une restructuration financière et opérationnelle complète. La compagnie continuera d'opérer normalement : les vols, les réservations et les programmes de fidélité resteront actifs pendant la procédure.
Le plan de restructuration se concentre sur quatre axes principaux : la refonte du réseau pour améliorer la connectivité dans les villes prioritaires, l'optimisation de la flotte pour adapter la capacité à la demande, l'amélioration de la structure des coûts et le renforcement des options de voyage via Spirit First, la Premium Economy et les offres Value. La société prévoit de réaliser d'importantes économies d'exploitation annuelles grâce à ces mesures.
Les actions ordinaires de Spirit devraient être radiées de la NYSE American et négociées de gré à gré avant d'être annulées dans le cadre de la restructuration, perdant finalement toute valeur.
Spirit Airlines (NYSE American: FLYY) hat freiwillig ein Chapter‑11‑Insolvenzverfahren eingeleitet, um eine umfassende finanzielle und operative Umstrukturierung durchzuführen. Die Fluggesellschaft wird den normalen Betrieb fortsetzen; Flüge, Buchungen und Treueprogramme bleiben während des Verfahrens aktiv.
Der Umstrukturierungsplan konzentriert sich auf vier Hauptbereiche: Netzwerk‑Neugestaltung zur Verbesserung der Konnektivität in Fokusstädten, Flottenoptimierung zur Anpassung der Kapazität an die Nachfrage, Verbesserung der Kostenstruktur und Ausbau der Reiseoptionen durch Spirit First, Premium Economy und Value‑Angebote. Das Unternehmen erwartet durch diese Maßnahmen erhebliche jährliche Betriebseinsparungen.
Es wird erwartet, dass die Stammaktien von Spirit von der NYSE American delistet und vor der endgültigen Streichung während der Umstrukturierung im außerbörslichen Handel gehandelt werden, wodurch sie letztlich wertlos werden.
- Continuation of normal operations including flights, tickets, and loyalty programs during restructuring
- Expected significant annual operating savings through fleet optimization
- Strategic focus on profitable routes and enhanced connectivity in key markets
- Maintaining employment, wages, and benefits for team members
- Common stock expected to be cancelled and have no value for shareholders
- Planned reduction in presence in certain markets
- Significant debt and lease obligations requiring restructuring
- Delisting from NYSE American stock exchange
Insights
Spirit Airlines has filed for Chapter 11 bankruptcy to restructure operations, optimize fleet, and address financial challenges while maintaining normal operations.
Spirit Airlines has initiated a voluntary Chapter 11 bankruptcy process in the U.S. Bankruptcy Court for the Southern District of New York, representing a significant strategic pivot for America's leading ultra-low-cost carrier. This restructuring follows what management describes as an insufficient previous restructuring that focused solely on debt reduction and capital raising.
The bankruptcy filing will enable Spirit to implement three critical transformations: (1) redesigning its network to focus on profitable markets while reducing presence in underperforming ones; (2) optimizing its fleet size to match capacity with demand, which is projected to generate
Despite the bankruptcy filing, Spirit plans to continue normal operations, with flights, ticket sales, and reservations remaining active. The company has secured necessary court approvals to maintain business continuity, including honoring customer tickets, credits, and loyalty points. Employee wages and benefits will continue, and post-filing vendor payments will proceed normally.
For investors, the news is especially significant as Spirit expects its shares to be delisted from NYSE American and ultimately canceled with no value through the Chapter 11 process. This indicates the restructuring will likely result in a complete loss for current equity holders. The company is working with its secured noteholders regarding potential financing needed during the proceedings, suggesting significant changes to its capital structure.
Spirit's CEO Dave Davis characterized the filing as necessary after "thoroughly evaluating options" and considering "recent events and market pressures" facing the airline industry. The bankruptcy follows apparent discussions with large lessors and secured noteholders over the past few months, indicating the company had been exploring alternatives before this filing.
In the news release, Spirit Airlines Takes Action to Build a Stronger Foundation and Future for America's Leading Value Airline, issued 29-Aug-2025 by Spirit Airlines over PR Newswire, we are advised by the company that the Advisors paragraph, should read, "Spirit is supported by Davis Polk & Wardwell LLP as legal counsel, Debevoise & Plimpton LLP as fleet counsel, FTI Consulting as restructuring, fleet and communications advisor, and PJT Partners as investment banker." The complete, corrected release follows:
Spirit Airlines Takes Action to Build a Stronger Foundation and Future for America's Leading Value Airline
Commences voluntary restructuring process to implement financial and operational transformation to redesign network, optimize fleet and realign strategy with evolving marketplace
Flights, ticket sales, reservations and operations continue
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 announced that it is executing a comprehensive restructuring of the airline to position the business for long-term success. To facilitate the process, the Company has filed voluntary petitions for Chapter 11 in the
Spirit intends to use the Chapter 11 process to implement the broad changes necessary to transition the Company for a sustainable future and position it to deliver the best value in the sky for years to come. The Company has been actively engaged with certain of its largest lessors, secured noteholders and key stakeholders over the past few months as it works to refine its path forward. The Chapter 11 process will provide Spirit the tools, time and flexibility to continue ongoing discussions with all of its lessors, financial creditors and other parties to implement a financial and operational transformation of the Company. The Company is also working productively with its secured noteholders, including with respect to potential financing that may become necessary later in the proceedings.
The Company is filing customary motions with the Court to enable it to conduct business as normal during the restructuring process. Guests can continue to book, travel and use tickets, credits and loyalty points. Wages and benefits will continue to be paid and honored for those employed by the Company, including contractors. Spirit intends to pay vendors and suppliers for goods and services provided on or after the filing date in the ordinary course.
"Since emerging from our previous restructuring, which was targeted exclusively on reducing Spirit's funded debt and raising equity capital, it has become clear that there is much more work to be done and many more tools are available to best position Spirit for the future," said Dave Davis, President and Chief Executive Officer. "After thoroughly evaluating our options and considering recent events and the market pressures facing our industry, our Board of Directors decided that a court-supervised process is the best path forward to make the changes needed to ensure our long-term success. We have evaluated every corner of our business and are proceeding with a comprehensive approach in which we will be far more strategic about our fleet, markets and opportunities in order to best serve our Guests, Team Members and other stakeholders."
"As we move forward, Guests can continue to rely on Spirit to provide high-value travel options and connect them with the people and places that matter most," Davis continued. "On behalf of our Board and leadership, I want to thank our Team Members for their continued dedication, resilience and commitment to delivering a safe, reliable operation and excellent service to our Guests."
Through the restructuring process, the Company expects to double down on its efforts to:
- Redesign its network: Spirit will focus its flying on key markets to provide more destinations, frequencies and enhanced connectivity in its focus cities. The Company will also reduce its presence in certain markets.
- Optimize its fleet size: Spirit will rightsize its fleet to match capacity with profitable demand in line with the redesigned network. This will significantly lower Spirit's debt and lease obligations and is projected to generate hundreds of millions of dollars in annual operating savings.
- Address its cost structure: Spirit will reinforce efforts to build on its industry-leading cost model by pursuing further efficiencies across the business.
- Effectively compete and meet evolving consumer preferences with its three travel options - Spirit First, Premium Economy and Value: Spirit will take full advantage of its lower costs to offer consumers more of what they want - value at every price point. The airline will expand the opportunities for travelers to choose premium options while remaining true to its original mission of making travel more accessible for everyone.
Spirit expects to be delisted from the NYSE American Stock Exchange in the near term as a result of the Chapter 11 filing, and the Company expects that its common stock will continue to trade in the over-the-counter marketplace through the Chapter 11 process. The shares are expected to be cancelled and have no value as part of Spirit's restructuring.
Additional Information
The Company has created a dedicated website for stakeholders to learn 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 (
Advisors
Spirit is supported by Davis Polk & Wardwell LLP as legal counsel, Debevoise & Plimpton LLP as fleet counsel, FTI Consulting as restructuring, fleet and communications advisor, and PJT Partners as investment banker.
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
Cautionary Statement Regarding Forward Looking Statements
This press release contains various forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") which are subject to the "safe harbor" created by those sections. Forward-looking statements are based on our management's beliefs and assumptions and on information currently available to our management. All statements other than statements of historical facts are "forward-looking statements" for purposes of these provisions. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "could," "would," "expect," "plan," "anticipate," "believe," "estimate," "project," "predict," "potential," and similar expressions intended to identify forward-looking statements. Forward-looking statements include, but are not limited to, statements regarding Spirit's expectations with respect to operating in the normal course, Spirit's proposed transformation plan, the Chapter 11 process and potential delisting of Spirit's common stock by the NYSE American Stock Exchange and the subsequent trading of Spirit common stock in over-the-counter markets. Forward-looking statements are subject to risks, uncertainties and other important factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by such forward-looking statements. Factors include, among others, risks attendant to the bankruptcy process, including the Company's ability to obtain court approval from the Court with respect to motions or other requests made to the Court throughout the course of Chapter 11; the effects of Chapter 11, including increased legal and other professional costs necessary to execute the Company's restructuring process, on the Company's liquidity (including the availability of operating capital during the pendency of Chapter 11); the effects of Chapter 11 on the interests of various constituents and financial stakeholders; the length of time that the Company will operate under Chapter 11 protection and the continued availability of operating capital during the pendency of Chapter 11; objections to the Company's restructuring process or other pleadings filed that could protract Chapter 11; risks associated with Spirit's proposed transformation plan; risks associated with third-party motions in Chapter 11; Court rulings in the Chapter 11 and the outcome of Chapter 11 in general; employee attrition and the Company's ability to retain senior management and other key personnel due to the distractions and uncertainties; risks associated with the potential delisting or the suspension of trading in its common stock by the NYSE American Stock Exchange and the subsequent trading of Spirit common stock in over-the-counter-markets; the impact of litigation and regulatory proceedings; and other factors discussed in the Company's Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the SEC and other factors, as described in the Company's filings with the Securities and Exchange Commission, including the detailed factors discussed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as supplemented in the Company's Quarterly Report on Form 10-Q for the fiscal quarters ended March 31, 2025 and June 30, 2025. Furthermore, such forward-looking statements speak only as of the date of this release. Except as required by law, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements. Risks or uncertainties (i) that are not currently known to us, (ii) that we currently deem to be immaterial, or (iii) that could apply to any company, could also materially adversely affect our business, financial condition, or future results. Additional information concerning certain factors is contained in the Company's Securities and Exchange Commission filings, including but not limited to the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K.
View original content to download multimedia:https://www.prnewswire.com/news-releases/spirit-airlines-takes-action-to-build-a-stronger-foundation-and-future-for-americas-leading-value-airline-302542357.html
SOURCE Spirit Airlines
FAQ
What happens to Spirit Airlines (FLYY) flights during Chapter 11 bankruptcy?
Will Spirit Airlines (FLYY) stock have any value after bankruptcy?
What changes is Spirit Airlines making to its business in 2025?
How will Spirit Airlines' Chapter 11 filing affect employees?
What is Spirit Airlines' restructuring plan for its route network?
