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Spirit has ended its financial restructuring process, the airline said in a news release on Wednesday, Mar. 12. The Dania Beach, Florida-based company filed for Chapter 11 bankruptcy in November 2024.
The airline has finalized a plan that eliminates $795 million in funded debt and it also received $350 million in equity investments.
"We're pleased to complete our streamlined restructuring and emerge in a stronger financial position to continue our transformation and investments in the guest experience," said CEO and president Ted Christie. "Throughout this process, we've continued to make meaningful progress enhancing our product offerings, while also focusing on returning to profitability and positioning our airline for long-term success."
The airline's reorganization received "overwhelming support" from its creditors and was approved by the US Bankruptcy Court for the Southern District of New York. The company now has a restructured board of directors and plans to relist shares on a stock exchange after initially trading in the over-the-counter market.
Spirit rejected a merger offer from Frontier Airlines in January, opting instead to independently restructure. During bankruptcy, Spirit implemented cost-cutting measures, including furloughing pilots and laying off 200 employees, in an effort to reduce annual operating expenses by $80 million.
Despite months of financial uncertainty, Spirit has continued operating flights and now looks to expand. Earlier in March, the airline unveiled new routes from Newark, New Jersey, and two Florida cities to Chattanooga, Tennessee, and Columbia, South Carolina.
Spirit also announced new flights from San Antonio to San Juan, Puerto Rico.
"I'm incredibly proud of our team members for their continued dedication to our guests and each other throughout this process," Christie said. "Despite the challenges we've faced as an organization, we're emerging as a stronger and more focused airline. On behalf of the executive team, I would also like to thank our outgoing board members for their contributions and invaluable service to our airline."
Spirit had 11,331 employees at the end of 2024, according to financial data firm Stock Analysis.
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