Spirit Airlines Exits Bankruptcy, Secures $350M Investment, Plans Premium Airline Rebranding

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Updated Mar 13, 2025, 04:31 AM

Spirit Airlines has officially exited Chapter 11 bankruptcy after four months of financial restructuring. The airline reduced its debt by approximately $795 million and secured a $350 million equity investment from existing investors, including Citadel Advisors, Pacific Investment Management Co., and Western Asset Management Co. The reorganization plan, confirmed by a U.S. bankruptcy court, provides Spirit with greater financial flexibility to pursue its transformation strategy. The airline plans to rebrand itself from a no-frills carrier to a premium airline, offering higher-value travel options to attract a broader customer base. CEO Ted Christie and the existing executive team will remain in leadership, focusing on enhancing the passenger experience and achieving long-term profitability. Spirit also plans to relist its new stock on a stock exchange, following the cancellation of pre-Chapter 11 shares. The restructuring process resulted in a 20% reduction in Spirit's operational capacity, including fleet size and workforce. The restructuring followed significant challenges, including rejected takeover bids from Frontier Airlines, the impact of COVID-19, an engine manufacturing defect, and historically high labor costs. Spirit's unionized pilots, who faced furloughs during the process, have called on management to prioritize workforce stability moving forward.

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Sources

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Bloomberg Línea

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Spirit Airlines came out of bankruptcy protection on Wednesday with “significantly less debt and greater financial flexibility”: https://t.co/xElDcmWlbg

Reuters

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US carrier Spirit Airlines, long known for its no-frills service, said it was pushing ahead with plans to rebrand itself as a premium airline as it emerged from bankruptcy protection after four months https://t.co/WD5WYqCgQ5

Reuters Business

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