WHAT HAPPENED
Spirit Aviation Holdings, the parent of Spirit Airlines, filed voluntary Chapter 11 petitions on Friday, Aug. 29, 2025, in the U.S. Bankruptcy Court for the Southern District of New York. The company said the court process will support a comprehensive overhaul of the airline.
WHAT TRAVELERS SHOULD KNOW RIGHT NOW
Flights, bookings, tickets, credits, and loyalty points remain valid while the case proceeds. Spirit says operations will continue and that wages, benefits, and post-filing vendor payments are expected to be honored in the ordinary course.
CEO’S MESSAGE: “BEST PATH FORWARD”
“We focused our previous restructuring on reducing funded debt and raising equity capital, but there is much more work to be done,” said Dave Davis, Spirit’s president and CEO. He called the court-supervised process the best way to make deeper changes for long-term success and to better serve guests, employees, and stakeholders.
THE OVERHAUL: NETWORK, FLEET, COSTS, PRODUCT
Spirit outlined four priorities:
• Redesign the route network around key markets and focus cities.
• Right-size the all-Airbus fleet to match profitable demand.
• Reinforce its low-cost model with further efficiencies.
• Tighten its product around three tiers—Spirit First, Premium Economy, and Value—to meet shifting consumer preferences.
CREDITOR TALKS AND COURT PROCESS
The company said it has been engaging with major lessors, secured noteholders, and other stakeholders for months and may seek additional financing later in the proceedings if necessary.
SHAREHOLDERS: DELISTING AND LIKELY WIPEOUT
Spirit expects to be delisted from the NYSE American in the near term. It anticipates its common stock will trade over the counter during the case but be cancelled with no value as part of the restructuring plan.
WHY IT MATTERS: SECOND BANKRUPTCY IN A YEAR
Friday’s filing is Spirit’s second Chapter 11 in less than a year; the carrier previously emerged from bankruptcy in March 2025. The repeat filing underscores continuing financial pressure and the need for broader operational changes.
WHERE TO FIND OFFICIAL UPDATES
Spirit said customers, employees, and creditors will receive ongoing guidance through company channels as the case advances.
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