Spirit Airlines makes major announcement

Spirit Aviation Holdings, the parent company of Spirit ​Airlines, said on Friday it plans to shrink its fleet to about one‑third of its pre‑bankruptcy size, according ‌to a court filing.

The low‑cost carrier, which has been marketing aircraft and sounding out potential buyers, is pressing ahead with a deep restructuring aimed at cutting costs and stabilizing its finances after filing for bankruptcy twice within a year.

Spirit entered Chapter 11 protection in August last year with 214 aircraft, ​then moved to cut roughly 100 aircraft in October through lease rejections and retirements.

Earlier this week, a U.S. bankruptcy judge approved ​Spirit’s request to launch an auction process for roughly 20 additional aircraft, from the 114 planes the ⁠airline currently operates. Friday’s announcement further advances its fleet‑cutting plans.

“We are pleased to achieve another milestone that reflects the confidence our ​lenders and noteholders have in our future, with our plan better positioning Spirit to continue delivering value to American consumers,” said Dave ​Davis, president and chief executive officer, in a statement.

Spirit said on Friday it intends to further reduce its fleet to 76 to 80 aircraft by the third quarter of 2026, primarily consisting of Airbus A320 and A321ceo jets, according to the filing.

Under the proposed restructuring, Spirit’s debt and lease ​obligations are expected to be reduced to about $2 billion from $7.4 billion before the filing.

The carrier warned on a hearing on Wednesday that ​volatility in fuel prices linked to the war involving Iran has complicated negotiations over its exit from Chapter 11.

The airline filed a restructuring support ‌agreement ⁠and proposed plan of reorganization with the U.S. Bankruptcy Court for the Southern District of New York.

On Wednesday, U.S. Bankruptcy Judge Sean Lane cleared Spirit to move forward with bidding procedures that includes CSDS Asset Management as a “stalking‑horse” bidder, setting a floor price of about $530 million and allowing other potential buyers to submit higher offers by April 20.

During the hearing, Spirit’s lawyer, Marshall Huebner of Davis ​Polk & Wardwell, said negotiations have taken ​longer than expected in ⁠part because fuel costs — a major expense for airlines — have become harder to forecast amid geopolitical uncertainty linked to the Iran war. That volatility, he said, has raised questions among creditors about Spirit’s ​projected liquidity and cash‑flow assumptions.

Judge Lane said those concerns were understandable, noting that airlines are ​particularly exposed to swings ⁠in fuel prices driven by global events.

“Global uncertainty regarding fuel is just a fact of life for any airline,” Lane said.

Spirit is targeting confirmation of a Chapter 11 bankruptcy plan by the end of May or possibly June, Huebner said.

The airline said it will focus ⁠on its ​strongest routes and markets, including Fort Lauderdale, Orlando, Detroit and the New York ​City area.

Spirit also said it expects to add aircraft between 2027 and 2030, tied to profitable growth opportunities, and plans to expand its Spirit First and Premium ​Economy products, continuing the rollout of premium economy seating across its fleet.