Spirit Airlines has reached an agreement in principle to come out of bankruptcy for the second time in a year, company officials said on Tuesday.
The airline, based in South Florida, said in a statement that the deal “will provide Spirit with the financial support needed to finalize its restructuring and complete the remaining changes needed to optimize the Company’s fleet, network and cost structure,” the Miami Herald reported.
“Spirit will emerge as a strong, leaner competitor that is positioned to profitably deliver the value American consumers expect at a price they want to pay,” CEO Dave Davis said in a statement.
The budget airline will focus on flying to destinations from its major Florida airports in Fort Lauderdale and Orlando, along with flights from the New York area and Detroit, CNBC reported.
Flights that do not have those airports as a destination “will be an even smaller part of the network,” Davis said.
In 2025, Spirit carried more passengers who traveled to or from Fort Lauderdale-Hollywood International Airport than any other airline during 2025, according to the Herald. The airline had 28% of the market share at the South Florida airport.
Spirit struggled to overcome losses that began during the COVID-19 pandemic, as consumer demand shifted from low fares toward a more comfortable experience, according to CNN.
Davis said that the airline will expand its Spirit First and Premium Economy offerings and will maintain its position as the industry price leader,” the Herald reported.
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He added that Spirit plans to increase flights “during peak days” and will reduce “off-peak flying,” the newspaper reported.
“This agreement in principle is the result of months of hard work and allows Spirit to move toward completing its transformation,” Davis said in the airline’s statement.
Spirit said that under the plan, it estimated costs being reduced and its debt cut from $7.4 billion to $2.1 billion, CNBC reported.
During its second bankruptcy, Spirit held deal talks with Frontier Airlines and with Castlelake, an investment firm, according to the news outlet.
No deal materialized, but Spirit attorney Marshall Huebner hinted that a combination could be back on the table.
“This emergence will allow Spirit to do many things from a position of strength and stability, including to consider potential future industry transactions,” Huebner said.