Spirit Airlines Exits Bankruptcy After 4 Months

Updated: March 12, 2025, 7:17pm CDT

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How Spirit Plans To Stay in Business After Restructuring
Final Thoughts

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Spirit Airlines has exited bankruptcy after filing for Chapter 11 protection almost 4 months ago. The ultra-low-cost airline had declared bankruptcy on November 18 of last year as it tried to stem losses and reorganize its business.

Let’s look at what’s happening at Spirit.

How Spirit Plans To Stay in Business After Restructuring

Spirit Airlines officially emerged from its financial restructuring on Tuesday, completing a process that turned approximately $795 million of debt into equity. As part of the restructuring, Spirit said, it has also received a $350 million equity investment from existing investors.

President and CEO Ted Christie, who is staying on, said in a statement that the airline emerges from bankruptcy with less debt and is “in a stronger financial position to continue our transformation and investments in the Guest experience.”

Spirit A320N LGA — Image Credit: Alberto Riva

That’s a reference to the new business model Spirit has adopted in an attempt to make profits again, which it hasn’t done since 2020. Instead of relying on the streamlined model that made it into a major player — charging extra for everything besides the naked seat — Spirit is now going more upscale.

Christie called this “moving forward with our strategy to redefine low-fare travel with our new, high-value travel options.”

Last month, a federal bankruptcy judge had approved Spirit’s conversion of debt into equity, setting the stage for the airline to exit bankruptcy as a standalone company. Under the deal that’s now official, the post-bankruptcy Spirit is owned by investment funds managed by Pacific Investment Management Company, UBS Asset Management, and Citadel Advisors.

Another immediate consequence of that court decision has been the end of the back-and-forth with rival Frontier over possibly merging into a single, giant ultra-low-cost airline. Frontier has repeatedly made offers to buy Spirit, and it’s possible that it might try again — depending on whether Spirit does manage a return to profit on its own.

Before the bankruptcy, Spirit shares were traded on the Nasdaq exchange under the iconic ticker symbol SAVE. And, in the future, they could be again. The airline said it “expects to re-list its shares on a stock exchange as soon as reasonably practicable.”

Bottom Line:

Even after filing for bankruptcy protection last year, Spirit continued flying, although it closed unprofitable routes and opened new ones. Passengers can expect flying to continue normally now that the airline has exited bankruptcy.

Final Thoughts

The sixth-largest U.S. airline by passengers carried is officially out of bankruptcy after a restructuring that lasted almost 4 months. For Spirit Airlines passengers, the process has been largely seamless, as the airline never stopped flying.

The saga, however, isn’t necessarily over. The restructured Spirit now needs to start making profits again. If it doesn’t, competitors — like Frontier, which has tried before — may make a move to absorb Spirit’s fleet of late-model Airbus jets and its other valuable assets.