Spirit Airlines prearranged Chapter 11 restructuring plan is expected to significantly alter its network, focusing on high-demand markets and redeploying 20 to 30 aircraft from underperforming routes primarily out of Fort Lauderdale International.
The budget airline aims to increase its market share in targeted cities by concentrating on mid-sized, value-seeking locations while reducing capacity in less profitable markets and implementing more seasonal and “less than daily” flights.
Bondholder support for the restructuring has been strong, with the airline securing considerable financing and planning to raise additional equity through the issuance of new common equity interests as part of its reorganization.
As part of the restructuring process, Spirit will eliminate its existing equity, leading to the delisting of its stock on the New York Stock Exchange and suspension of trading, affecting existing shareholders adversely.
