US budget carrier Spirit Airlines says it is downsizing its fleet by almost two-thirds.
The Florida-headquartered air carrier, known for its no-frills flying and ultra-low-cost fares, filed for Chapter 11 bankruptcy protection in August — the second time in less than a year.
While it once operated more than 200 aircraft, Spirit now intends to run fewer than 80 by the third quarter of 2026. It anticipates adding aircraft between 2027 and 2030.
In a news release, Spirit said it will continue to align its network with consumer demand and focus on its strongest routes and markets, including Fort Lauderdale, Orlando, Detroit, and New York City. It also plans to expand its first class and premium economy options.
The company said it expected its debt and lease obligations to be reduced from $7.4 billion pre-filing to about $2 billion post-emergence.
“While we still have work to do with other important stakeholders, today’s agreements and filings are very material steps forward toward emergence,” Spirit’s president and CEO, Dave Davis, said in a press release. “I also want to thank our team members and guests for their support as we work together to build a stronger Spirit.”
Mounting financial losses
Spirit first sought bankruptcy protection in November 2024, following years of mounting financial losses and the collapse of a proposed $3.8 billion merger deal with JetBlue.
The budget airline, easily recognizable by its bright yellow planes, reported in its initial voluntary bankruptcy petition that as of September that year, it had $9.49 billion in total assets and $8.99 billion in total debts.
Spirit emerged from bankruptcy in March last year after the airline said it slashed $800 million in debt and received a $350 million equity infusion from existing investors “to support Spirit’s future initiatives,” but the rebound was short-lived.
In a Securities and Exchange Commission quarterly report filed last August, the airline’s parent company, Spirit Aviation Holdings, warned it may not be able to stay in business another year. Later that month, the airline filed for bankruptcy protection for a second time and has been cutting costs ever since. At the time of its filing, Spirit listed debt of $8 billion and assets of $8.56 billion.
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