Spirit Airlines is set to exit Chapter 11 bankruptcy by summer 2026. The budget airline reached a deal with its lenders and secured creditors to support its restructuring efforts. This means Spirit can avoid liquidation and continue operating after filing for bankruptcy for the second time in August 2025, just months after its first filing.
Despite facing many challenges, Spirit is determined to stay in business. As of August, the airline employed around 25,000 people, including pilots, flight attendants, and maintenance technicians. To create a “new Spirit,” the company plans to revamp its fleet, route network, and cost structures.
Spirit will still focus on low fares but will introduce more options to help customers manage costs. The airline will feature smaller, leaner aircraft and new offerings like premium economy and a version of “first class” seating. CEO Dave Davis stated, “Spirit will emerge as a strong, leaner competitor that is positioned to profitably deliver the value American consumers expect at a price they want to pay.”
On Tuesday, Spirit confirmed its plans to emerge from bankruptcy. The airline announced that the agreement in principle will provide the financial support needed to finalize its restructuring and optimize its fleet, network, and costs.
By summer, customers can look forward to a fresh start for Spirit Airlines, with new options and a commitment to affordable travel.
