Business

Spirit Airlines reaches a deal to avoid closure

Tonya Costoff Medeiros

02 Mar 2026 — 1 min read

A leaner Spirit Airlines prepares for a summer comeback. ©Image Credit: Spirit Airlines

Spirit Airlines will live another day and continue to serve customers. It's been a rather long and bumpy road for the airline, with two bankruptcy filings and ongoing financial losses. The airline finally has some positive news to share. It had been at risk of closing, but thanks to an agreement with creditors, it will continue to operate.

The airline will come out of bankruptcy soon

The airline announced it will officially conclude a bankruptcy process in late spring or early summer. Could the airline be turning the corner to profitability? If the words of Dave Davis, CEO of Spirit Airlines, are anything to go by, then the answer to that question is a resounding yes!

"Spirit will emerge as a strong, leaner competitor that is positioned to profitably deliver the value American consumers expect at a price they want to pay,” Davis said in a statement.

The new look will be leaner

Over the past few years, the airline had been waving all kinds of red flags. It even said there was "substantial doubt" it could stay in business. Fast forward to today, and things are turning around.

A big part of what's making the turnaround possible is making the airline leaner. Overall, it will be a smaller company that has cut staff, reduced costs and debt, and sold several aircraft to raise money.

What can customers expect?

If you're planning to fly with Spirit Airlines this year, you'll notice a few changes. There will be 40% fewer flights and seats available during the summer travel season.

You'd be smart to book well in advance so you don't risk the flight being sold out. The independent carrier will still offer no-frills, competitively based fares. This is what made it such a popular option.

Down but not out

Spirit Airlines is the classic example of a company down on its luck but not out of the game. If you're interested in low-cost fares to popular destinations, you'll still have options with Spirit.

Source: CNN

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