Spirit Airlines Commences Restructuring, Files for Chapter 11 Protection

• Spirit Airlines commences voluntary restructuring process. • Focuses on financial and operational transformation. • Redesigns network, optimizes fleet, and realigns strategy. • Flights, ticket sales, reservations, and operations continue uninterrupted. • Files voluntary petitions for Chapter 11 bankruptcy protection. • Aims to position the airline for long-term success.

Spirit Airlines, the leading value airline in the United States, has initiated a voluntary restructuring process to build a stronger foundation for its future. The company, under the parent company Spirit Aviation Holdings, Inc., has filed voluntary petitions for Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court for the Southern District of New York [1].

The restructuring process aims to implement a comprehensive financial and operational transformation. This includes redesigning the airline's network to focus on key markets, optimizing its fleet size to match capacity with profitable demand, and realigning its strategy with evolving market conditions [1]. These changes are expected to significantly lower the airline's debt and lease obligations, generating hundreds of millions of dollars in annual operating savings.

Flights, ticket sales, reservations, and operations continue uninterrupted during this period. The company has filed customary motions with the court to enable it to conduct business as normal during the restructuring process. Guests can continue to book, travel, and use tickets, credits, and loyalty points. Wages and benefits will also continue to be paid and honored for those employed by the company, including contractors. Spirit Airlines expects to delist from the NYSE American Stock Exchange in the near term as a result of the Chapter 11 filing, with its common stock continuing to trade in the over-the-counter marketplace [1].

Dave Davis, President and Chief Executive Officer of Spirit Airlines, stated, "Since emerging from our previous restructuring, it has become clear that there is much more work to be done and many more tools are available to best position Spirit for the future. After thoroughly evaluating our options and considering recent events and the market pressures facing our industry, our Board of Directors decided that a court-supervised process is the best path forward to make the changes needed to ensure our long-term success" [1].

The restructuring process will focus on several key areas: redesigning the network to provide more destinations and frequencies in focus cities, optimizing the fleet size to match capacity with profitable demand, and addressing the cost structure to reinforce its industry-leading cost model. Additionally, Spirit Airlines will expand its travel options to include more premium services while remaining true to its original mission of making travel more accessible for everyone [1].

Spirit Airlines expects to emerge from the restructuring process as a more competitive and sustainable airline, better positioned to meet the evolving preferences of consumers. The company is supported by Davis Polk & Wardwell LLP as legal counsel, Debevoise & Plimpton LLP as fleet counsel, FTI Consulting as restructuring, fleet, and communications advisor, PJT Partners as investment banker, and Seabury Aviation Partners as network advisor [1].

For more information about Spirit Airlines' restructuring process, stakeholders can visit the dedicated website at [www.spiritrestructuring.com](http://www.spiritrestructuring.com) [1].

References:
[1] https://www.morningstar.com/news/pr-newswire/20250829fl62252/spirit-airlines-takes-action-to-build-a-stronger-foundation-and-future-for-americas-leading-value-airline