Spirit Airlines Reaches Deal to Exit Second Bankruptcy

Spirit Airlines' parent company announced Tuesday that it has reached a preliminary agreement with lenders and secured creditors, paving the way for the budget carrier to exit its second Chapter 11 bankruptcy in late spring or early summer. The Florida-based airline, headquartered in Dania Beach, filed for protection in August 2025, just months after emerging from a prior reorganization in March.

The deal provides the financial backing needed to complete Spirit's restructuring, including adjustments to its fleet, route network and cost structure. Upon emergence, the airline plans to operate as a smaller, more efficient entity, maintaining its focus on low fares while introducing expanded options such as premium economy seating and its Spirit First class with additional legroom. The company also intends to boost flights on peak travel days and cut back on off-peak routes, though specific destinations were not detailed.

"This agreement in principle is the result of months of hard work and allows Spirit to move toward completing its transformation," said Dave Davis, the airline's president and chief executive officer. "Spirit will emerge as a strong, leaner competitor that is...