Begins volunteer restructuring process to execute financial and operational improvement to revamp network, optimize fleet and realign strategy with advancing industry
Trips, ticket sales, reservations and operations continue
DANIA BEACH, Fla., Aug. 29, 2025/ PRNewswire/– Spirit Air Travel Holdings, Inc. (NYSE American: FLYY), moms and dad firm of Spirit Airlines, LLC (“Spirit” or the “Company”), today revealed that it is performing an extensive restructuring of the airline company to place business for lasting success. To facilitate the process, the Firm has submitted voluntary requests for Phase 11 in the U.S. Bankruptcy Court for the Southern Area of New york city (the “Court”).
Spirit plans to use the Chapter 11 procedure to execute the broad changes necessary to transition the Business for a lasting future and setting it to deliver the best value overhead for several years to come. The Company has actually been proactively engaged with particular of its largest owners, secured noteholders and key stakeholders over the past couple of months as it works to refine its course onward. The Chapter 11 process will certainly provide Spirit the tools, time and versatility to continue ongoing discussions with every one of its lessors, financial lenders and other parties to apply a monetary and functional improvement of the Firm. The Business is likewise functioning proficiently with its protected noteholders, including with respect to potential funding that might come to be essential later on in the procedures.
The Business is filing traditional activities with the Court to allow it to conduct business as regular during the restructuring procedure. Guests can remain to book, traveling and use tickets, credit scores and loyalty factors. Incomes and advantages will certainly remain to be paid and recognized for those employed by the Firm, including specialists. Spirit means to pay suppliers and vendors for goods and solutions given on or after the declaring day in the ordinary course.
“Considering that emerging from our previous restructuring, which was targeted solely on lowering Spirit’s financed financial debt and raising equity capital, it has ended up being clear that there is far more work to be done and much more devices are readily available to best setting Spirit for the future,” claimed Dave Davis, Head Of State and Ceo. “After thoroughly assessing our choices and taking into consideration recent events and the market pressures facing our market, our Board of Directors decided that a court-supervised process is the very best path ahead to make the adjustments required to guarantee our long-lasting success. We have assessed every corner of our business and are proceeding with a detailed approach in which we will certainly be much more tactical about our fleet, markets and chances in order to ideal serve our Visitors, Group Members and other stakeholders.”
“As we move forward, Guests can remain to depend on Spirit to provide high-value travel choices and connect them with the people and locations that matter most,” Davis continued. “In support of our Board and leadership, I intend to thank our Team Members for their continued devotion, durability and commitment to delivering a secure, trusted procedure and exceptional service to our Guests.”
With the restructuring procedure, the Firm anticipates to double down on its initiatives to:
- Revamp its network: Spirit will certainly concentrate its flying on essential markets to give even more locations, regularities and boosted connectivity in its focus cities. The Firm will certainly also reduce its visibility in certain markets.
- Maximize its fleet dimension: Spirit will certainly rightsize its fleet to match capacity with lucrative demand in accordance with the revamped network. This will dramatically reduced Spirit’s financial debt and lease obligations and is projected to produce numerous countless bucks in yearly operating cost savings.
- Address its cost framework: Spirit will strengthen initiatives to improve its industry-leading cost design by going after further effectiveness across the business.
- Effectively contend and satisfy developing consumer choices with its three traveling alternatives– Spirit First, Costs Economic Situation and Worth: Spirit will certainly take full advantage of its lower prices to provide consumers more of what they desire– value at every rate point. The airline company will certainly expand the chances for travelers to choose premium alternatives while remaining true to its original objective of making traveling a lot more accessible for everybody.
Spirit expects to be delisted from the NYSE American Supply Exchange in the near term as an outcome of the Phase 11 filing, and the Company anticipates that its ordinary shares will certainly continue to trade in the non-prescription marketplace with the Chapter 11 process. The shares are anticipated to be terminated and have no value as part of Spirit’s restructuring.