American Airlines Watches Closely Spirit’s Bankruptcy, Eyes Assets

American Airlines has submitted a notice of appearance in Spirit Airlines’ Chapter 11 bankruptcy proceeding in the Southern District of New York.

This filing grants American the legal right to receive all significant updates related to the case, including financial reports, restructuring proposals, and any plans for selling assets. It also signals that American is monitoring Spirit’s situation carefully, likely looking for strategic openings as Spirit reorganizes.

Spirit filed for its second bankruptcy in August 2025 after a prolonged period of declining cash reserves, steep losses, and failed merger efforts, including its blocked deal with JetBlue.

In October, the court approved $475 million in debtor-in-possession financing, enabling Spirit to continue operating while it pursues a restructuring plan aimed at eliminating $795 million in debt and stabilizing the company.

American’s interest is partly connected to its past involvement with JetBlue and Spirit. In May 2023, a US federal judge struck down the Northeast Alliance, an agreement between American and JetBlue that involved sharing slots and coordinating routes at major Northeast airports.

The court ruled that the alliance harmed competition at airports such as New York JFK, LaGuardia, Boston Logan, and Washington Reagan National. The agreement, first announced in July 2020 during the early stages of the COVID recovery, was intended to strengthen both airlines by allowing them to trade valuable airport slots and expand their route networks.

American could now be watching Spirit’s bankruptcy for potential strategic gains. Spirit may be forced to sell assets, including undelivered Airbus A320neo aircraft or airport slots in competitive markets like New York.

With Spirit under financial pressure and reducing capacity, these assets could give American a way to expand its network without taking on the financial risks of a full merger.

For more background, explore our detailed explainer on Spirit’s bankruptcy history.

Photo by Miguel Ángel Sanz on Unsplash