Spirit Airlines hopes to emerge from bankruptcy by summer
There appears to be a light at the end of the proverbial tunnel when it comes to Spirit Airlines.
The Florida-based budget airline on Tuesday said it reached a "significant milestone" in its monthslong corporate restructuring. The company said it expects to emerge from Chapter 11 bankruptcy by late spring or early summer.
Spirit has been mired in financial uncertainty for many months.
The ultra-low-cost carrier filed for Chapter 11 bankruptcy in late August, its second filing in less than a year.
Prior to that, company leaders had raised concerns about the company's long-term ability to keep operating — and Wall Street had echoed those concerns.
But the airline on Tuesday announced an agreement in principle with its creditors that executives said would provide the airline enough financial support to complete its restructuring.
"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," Spirit president and CEO Dave Davis said in a statement.
Once out of bankruptcy, Spirit said it plans to revamp its flight schedule with more flights on peak leisure travel days and fewer flights during lower-demand stretches.
The carrier also teased "more premium choices" on its big yellow planes and updates to its Free Spirit loyalty program.
Even consumers who rarely (or never) fly with Spirit will likely benefit from the company's continued existence, airfare experts have long said.
Competition from budget airlines is thought to drive down fares across the industry.
Spirit will almost certainly emerge from bankruptcy as a smaller competitor in the airline sector after slashing costs and cutting droves of flights late last year.
During the first half of 2026, the carrier is set to operate roughly 28% fewer flights than it did a year prior, according to data from aviation analytics firm Cirium. It will continue to operate flights throughout its bankruptcy proceedings.
While it's unclear whether more flight cutbacks could be coming, this week's news should offer at least some reassurance to travelers with plans to fly Spirit in the coming months, after months of uncertainty.
Related reading: