by Lacey Pfalz
Last updated: 10:00 AM ET, Thu March 13, 2025
Spirit Airlines emerged from its financial restructuring following its Chapter 11 bankruptcy this week, aimed at restoring the budget airline to profitability with a new approach focusing on premium travel experiences.
The airline declared bankruptcy in November 2024 and has remained largely in operation throughout the bankruptcy period, though it has furloughed several hundred airline pilots in the interim. It was the first American airline to declare bankruptcy since 2011.
"We're pleased to complete our streamlined restructuring and emerge in a stronger financial position to continue our transformation and investments in the Guest experience," said Ted Christie, the airline's President and CEO. "Throughout this process, we've continued to make meaningful progress enhancing our product offerings, while also focusing on returning to profitability and positioning our airline for long-term success. Today, we're moving forward with our strategy to redefine low-fare travel with our new, high-value travel options."
According to Reuters, these high-value travel options would be more attractive to middle- and high-income travelers who have led the trend towards premium travel offerings, a move the airline believes could generate 13 percent more revenue per passenger.
Spirit may also redesign its loyalty program and enter new partnerships with other air carriers.
On February 20, a court approved the airline's restructuring plan to equitize $795 million of funded debt. As part of the plan, Spirit's existing investors added a $350 million equity investment to help the airline reposition itself following bankruptcy.
Ted Christie will remain Spirit's President and Chief Executive Officer. Its executive team hasn't changed, though its Board of Directors has. The board will include Christie, Robert A. Milton, David N. Siegal, Timothy Bernlohr, Eugene I. Davis, Andrea Fischer Newman and Radha Tilton.
Spirit also hopes to re-list its shares on a stock exchange when it is "reasonably practicable" to do so.
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