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Spirit Airlines Exits Bankruptcy, Pursues Standalone Revamp

The budget carrier has reduced debt, secured new investments, and is shifting its strategy to attract higher-spending travelers.

  • Spirit Airlines has emerged from Chapter 11 bankruptcy after converting $795 million in debt into equity and securing a $350 million equity investment from existing investors.
  • The airline's restructuring plan was approved by the U.S. Bankruptcy Court, with strong support from its creditors, and aims to position Spirit for long-term profitability.
  • Spirit rejected multiple takeover bids from Frontier Airlines, reaffirming its commitment to an independent turnaround strategy.
  • The airline is shifting its focus from price-sensitive travelers to affluent customers, introducing tiered pricing with bundled amenities such as larger seats, priority boarding, and internet access.
  • Spirit plans to relist its newly issued shares on a stock exchange, though they will initially trade over-the-counter after the cancellation of its previous common stock.
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