Spirit Airlines Takes Action to Build a Stronger Foundation and Future for America’s Leading Value Airline

Dania Beach, Fla. – Spirit Aviation Holdings, Inc. (NYSE American: FLYY), the parent company of Spirit Airlines, LLC (“Spirit” or “the Company”), announced today that it is undertaking a comprehensive restructuring under Chapter 11 bankruptcy protection, filed in the U.S. Bankruptcy Court for the Southern District of New York.

This strategic move aims to reposition the airline for sustainable, long-term success by transforming its financial and operational foundations. Spirit has been in active discussions with key lessors, secured noteholders, and other stakeholders to craft this forward-looking plan. The Chapter 11 process will provide the necessary tools, time, and flexibility to carry out this transformation.

Continuity of Operations During Restructuring

Spirit emphasized that all flights, bookings, and operations will continue uninterrupted. Wages and benefits will be honored for all team members and contractors, and the airline intends to pay vendors and suppliers for services rendered after the filing date, in the ordinary course of business .

CEO Statement

Dave Davis, President and Chief Executive Officer, highlighted that the airline’s previous restructuring focused on debt reduction and equity infusion—but did not go far enough. After a thorough assessment of current market pressures, the Board concluded that a court-supervised process is the best way forward. The company is undertaking a comprehensive review of all operations to better serve its guests, team members, and stakeholders 

Key Restructuring Pillars

Spirit’s restructuring strategy centers on four pivotal initiatives:

• Redesigning its network by concentrating on key markets to deliver enhanced connectivity and reducing exposure in less profitable areas.

• Optimizing fleet size to better align with demand, aiming to significantly reduce debt and lease obligations and realizing hundreds of millions in annual savings.

• Reinforcing its cost structure by building on its low-cost model and seeking operational efficiencies across the business.

• Expanding travel options through its three-tier product strategy—Spirit First, Premium Economy, and Value—giving customers premium offerings while remaining true to its value-centric mission

Impact on Stock Listing

The Chapter 11 filing is expected to result in Spirit being delisted from the NYSE American stock exchange. During restructuring, its common stock will continue to trade over the counter, but is anticipated to be cancelled with no value as part of the restructuring process.

Resources for Stakeholders

For more information, Spirit has launched a dedicated restructuring website at, and stakeholders can also access court filings through dm.epiq11.com/SpiritAirlines, or call the restructuring information line: (855) 952-6606 (U.S. toll-free) or +1 (971) 715-2831 (international).

Advisors to Spirit

• Legal Counsel: Davis Polk & Wardwell LLP

• Fleet Counsel: Debevoise & Plimpton LLP

• Restructuring, Fleet, & Communications Advisor: FTI Consulting

• Investment Banker: PJT Partners

• Network Advisor: (as cited by some reports, e.g., Seabury Aviation Partners)

Why This Restructuring Matters

Spirit’s move marks its second Chapter 11 filing in less than a year, having previously emerged from bankruptcy in March 2025. The airline had warned as early as August of exposed “substantial doubt” about its ability to continue as a going concern amid weak domestic leisure travel demand and rising competition .

In reaction to the filing, the airline’s parent company’s stock dropped significantly—for instance, following the announcement, shares plunged 46% in after-hours trading to about 65 cents .