U.S. low-cost carrier Spirit Airlines has reached a preliminary agreement with its creditors as part of efforts to exit its second bankruptcy process this year.
The agreement is structured to allow the airline to complete its restructuring plan and emerge from Chapter 11 protection by late spring or early summer with a stronger financial foundation.
Under the restructuring framework, Spirit is expected to operate with a smaller fleet and a more optimized route network in order to reduce costs and improve profitability. The move follows the airline’s second Chapter 11 filing last August, which was driven by rising costs and mounting debt pressures.
Company officials stated that measures such as reducing aircraft numbers, withdrawing from certain routes, and streamlining operational expenses will continue as part of the restructuring process.
The exit plan remains subject to court approval. Once finalized, Spirit aims to return to sustainable operations with a leaner and more financially stable business model.
