US price range service Spirit Airways says it’s downsizing its fleet by nearly two-thirds.
The Florida-headquartered air service, recognized for its no-frills flying and ultra-low-cost fares, filed for Chapter 11 bankruptcy protection in August — the second time in lower than a yr.
Whereas it as soon as operated greater than 200 plane, Spirit now intends to run fewer than 80 by the third quarter of 2026. It anticipates including plane between 2027 and 2030.
In a information launch, Spirit mentioned it is going to proceed to align its community with client demand and give attention to its strongest routes and markets, together with Fort Lauderdale, Orlando, Detroit, and New York Metropolis. It additionally plans to develop its first-class and premium economic system choices.
The corporate mentioned it anticipated its debt and lease obligations to be diminished from $7.4 billion pre-filing to about $2 billion post-emergence.
“Whereas we nonetheless have work to do with different necessary stakeholders, at the moment’s agreements and filings are very materials steps ahead towards emergence,” Spirit’s president and CEO, Dave Davis, mentioned in a press launch. “I additionally need to thank our staff members and friends for his or her assist as we work collectively to construct a stronger Spirit.”
Mounting monetary losses
Spirit first sought bankruptcy protection in November 2024, following years of mounting monetary losses and the collapse of a proposed $3.8 billion merger take care of JetBlue.
The price range airline, simply recognizable by its vivid yellow planes, reported in its preliminary voluntary chapter petition that as of September that yr, it had $9.49 billion in whole belongings and $8.99 billion in whole money owed.
Spirit emerged from chapter in March final yr after the airline mentioned it slashed $800 million in debt and obtained a $350 million fairness infusion from present buyers “to assist Spirit’s future initiatives,” however the rebound was short-lived.
In a Securities and Change Fee quarterly report filed final August, the airline’s mum or dad firm, Spirit Aviation Holdings, warned it might not be capable of keep in enterprise one other yr. Later that month, the airline filed for bankruptcy protection for a second time and has been slicing prices ever since. On the time of its submitting, Spirit listed debt of $8 billion and belongings of $8.56 billion.
