Entering Chapter 11 / Spirit Airlines Spirit Airlines Enters Chapter 11: Flights Continue as Usual
The American low-cost airline Spirit Airlines announced it has voluntarily entered into a Chapter 11 reorganization process for the second time in the past year.
In a statement by the company's president and CEO, Dave Davis, appointed only last April, it was noted that this move is intended 'to build a stronger foundation for the company's future' and to assure continued service to customers, as explained in a special letter released by the company:
'Today, Spirit took a proactive step to build a stronger basis and future for our company. We voluntarily entered a reorganization process under Chapter 11 to secure our airline's long-term success so we can continue to serve our guests in the future. Chapter 11 is a court-supervised legal process that allows companies to reorganize their businesses while continuing operations. Almost every major U.S. airline has used these tools to improve their business and position themselves for lasting success.'
The process allows companies to continue flight operations while restructuring their debt and costs.
The CEO emphasizes that commercial and operational activities continue as normal: booking and flying with Spirit is still possible, and all tickets, credits, and loyalty points remain valid. The Free Spirit club program, Saver$ Club benefits, and the company credit card terms remain unchanged, with the company's teams 'focused on safe, reliable operation and enhancing customer experience.'
In November 2024, the low-cost carrier informed its bondholders of its bankruptcy filing after previously announcing its intention to seek Chapter 11.
In March, the company announced (13.3.25) the completion of a new economic reorganization, which prevented it from going into Chapter 11, a precursor to bankruptcy.
According to the company's statement in March 2025, it successfully reduced its debt by approximately $795 million, providing it with enhanced financial flexibility for continued operations. As part of this process, Spirit Airlines secured an investment of $350 million from existing investors to support its transformation and improve passenger experience.
After stabilizing, reducing debts by nearly $800 million, and securing cash flow from investors, the company announced in April the appointment of a new CEO. Dave Davis, a former president and executive at Sun Country Airlines, was appointed as the head of the company. He had previously held various positions at Southwest Airlines. Davis became CEO, President, and a board member starting April 21, 2025, replacing Ted Christie who will leave the company.
What Does This Mean for Passengers?
Flights are operating as usual: schedules continue; existing tickets remain valid.
Loyalty and Benefits: Free Spirit points can be accrued and redeemed; Saver$ Club is active.
Credits and Vouchers: Existing credits can be used for future bookings.
Customer Service: Service centers and the company's website continue to operate; Spirit directs for continuous updates on the dedicated restructuring website (spiritrestructuring.com).
Chapter 11 is a common American mechanism allowing airlines to improve efficiency under supervision, renegotiate agreements and debts, and raise capital without ceasing flights. The logic is to maintain revenue from ongoing operations while making deep adjustments in expenses and debt structure, to emerge into more stable business operations.
In the immediate term, Spirit highlights there is no change for passengers: flights, tickets, and benefits as usual. However, reorganization proceedings may involve schedule adjustments, fleet changes, or destination restructuring, subject to court approvals and management decisions. The company promises to update in advance about any major changes.
Davis writes in the announcement that 'the most important thing to know is that Spirit continues to operate and offer high-value travel options.' According to him, almost all major airlines in the U.S. have utilized similar organizational tools at some point to improve their business and ensure long-term success.
In conclusion: There is no immediate change for passengers. Spirit seeks to use the legal procedure to stabilize its financial position and continue to offer flights at competitive prices, while maintaining routine operational and service activities.
Our operation continues as normal, and you can continue to count on us for great value and excellent service. Read our open letter to Guests. pic.twitter.com/Qg7AR920Dl
— Spirit Airlines (@SpiritAirlines) August 29, 2025