Spirit Airlines CEO expects budget airline to exit its second bankruptcy process by this summer

Fortune

by Rio Yamat, The Associated Press

February 25, 2026

AI-Generated Deep Dive Summary

Spirit Airlines’ parent company has announced its plans to exit Chapter 11 bankruptcy by late spring or early summer following an agreement with lenders and secured creditors. This deal will aid Spirit in finalizing adjustments to its fleet, route network, and cost structure as it aims to emerge as a more efficient carrier focused on low fares with enhanced offerings like premium economy and expanded legroom options. CEO Dave Davis expressed confidence in the company’s ability to become a strong competitor positioned for profitable growth. The airline filed for bankruptcy protection again in August after emerging from its previous Chapter 11 reorganization in March 2023. This second filing was necessary to address further restructuring needs, including reducing debt and exploring new strategies to improve profitability. Spirit faced significant challenges during the COVID-19 pandemic, with rising operational costs and increasing debt leading to financial losses exceeding $2.5 billion since early 2020. These struggles prompted the airline to suspend operations in several U.S. cities and furlough over 1,800 flight attendants. Despite these challenges, Spirit remains a key player in the budget airline market, known for its vibrant branding and no-frills service model. However, it faces intense competition from larger airlines that have introduced their own low-cost services. Spirit’s efforts to adapt and restructure aim to position it as a leaner, more competitive carrier capable of thriving in a challenging post-pandemic environment. This situation highlights the ongoing difficulties faced by budget carriers like Spirit, which are under pressure from both financial challenges and market competition. As they navigate these obstacles, companies like Spirit must find innovative ways to reduce costs while maintaining profitability and customer appeal.

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Originally published on Fortune on 2/25/2026