Spirit Airlines Gets Court Approval for Restructuring Plan

Spirit Airlines has received approval for its restructuring plan from the US Bankruptcy Court for the Southern District of New York.

The plan includes reducing its fleet size, cutting service to about 11 cities to focus on higher-demand markets, and upgrading premium service offerings.

This week, Spirit filed for Chapter 11 due to ongoing financial difficulties despite emerging from its previous bankruptcy just months earlier in March 2025. Due to weak demand and high operating expenses, the airline reported a net loss of almost $246 million in June 2025.

Spirit has struggled to fix its cost structure, resulting in the second bankruptcy filing in under a year.

In July 2025, Spirit announced plans to furlough 270 pilots starting November 1 and demote 140 captains to first officers effective October 1 to better align staffing with a reduced flight schedule.

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