‍DANIA BEACH — Spirit Aviation Holdings, parent company of Spirit Airlines (NK), announced today that it has again voluntarily entered Chapter 11 restructuring in an effort to strengthen its financial foundation and ensure the long-term viability of the ultra-low-cost carrier (ULCC).

The company emphasized that flights will continue as scheduled and that passengers can still book tickets, redeem credits and loyalty points, and benefit from NK's Free Spirit loyalty program, Saver$ Club perks, and credit card agreements. Team members remain on duty, with the airline pledging “a safe journey, excellent service, and an elevated experience” despite the restructuring process.

Chapter 11, a court-supervised legal mechanism, will allow NK to reorganize its business while continuing daily operations. Nearly every major U.S. airline has previously used the same process to recover from financial distress, the airline reminded us in the press release.

Spirit has launched a dedicated website — www.spiritrestructuring.com — where guests can find information about the process. Additional court filings and related documents are also accessible through Spirit’s restructuring information page at dm.epiq11.com/SpiritAirlines.

Workforce Cuts and Operational Downsizing

This latest restructuring follows significant workforce reductions announced last month. The airline announced that it will furlough 270 pilots starting November 1, 2025, while 140 captains will be demoted to first officers, effective October 1, 2025. The move, which the airline described as necessary to align staffing with a downsized flight schedule, underscores the ongoing pressure the carrier faces.

The pilot cuts mark the third round of workforce reductions since September 2024, following previous job actions earlier this year.

Financial Struggles Continue

Spirit has faced persistent challenges, with demand for economy-class travel remaining weak. The airline reported net losses exceeding US$1.2 billion in 2024.

This is not NK’s first attempt at restructuring. The carrier previously filed for Chapter 11 bankruptcy in November 2024 and emerged in March 2025 after converting approximately US$795 million of debt into equity and securing additional investor support.

The company now says that the new Chapter 11 filing is intended to provide “a stronger foundation” as it works to stabilize operations and return to profitability.

What This Means for Passengers

For travelers, Spirit reiterated that:

• All flights are operating normally.
• Tickets, travel credits, and loyalty points remain valid.
• Loyalty perks, credit card benefits, and Saver$ Club memberships are unchanged.
• Safety and service standards remain a priority.

What’s Next?

Spirit’s leadership maintains that the restructuring will enable the company to emerge more competitive in the long term. For now, the airline remains operational and committed to providing affordable travel, even as it again need to navigates the turbulence of financial restructuring and workforce realignment just months after it emerged from its last restructuring attempt.

In the latest episode of the Airways Podcast, hosts Rohan Anand-Mahajan, Vinay Bhaskara, and Helwing Villamizar discuss the recent labor strikes at Air Canada (AC), the implications for the airline industry, and the financial distress faced by Spirit Airlines at the 28-minute mark of the pod.