Spirit Airlines Considers New Financial Restructuring

Spirit Airlines is exploring the possibility of a second financial restructuring. The airline has hired PJT Partners as its financial adviser and engaged consulting firms FTI and Seabury Airline Strategy Group to assess various strategic options.

Although Spirit exited bankruptcy in March 2025 after eliminating $795 million of debt through an equity conversion, its financial struggles have continued.

Due to weak demand in the US domestic market, Spirit’s recent cost-cutting measures included furloughing 270 pilots and demoting 140 others.

Credit rating agencies, Fitch Ratings and Moody’s Investors Service, have downgraded Spirit’s status to junk (the non-investment-grade category).

Earlier in August, Spirit Airlines announced concerns about its financial stability, stating there were doubts about its ability to continue operations. In the SEC filing, the airline reported a second-quarter loss of $245.8 million, up from $192.9 million the previous year.

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