The ultra low-cost airline said it plans to keep flying as usual during the restructuring process, meaning passengers can still book trips and use their tickets, credits and loyalty points. Employees and contractors will also continue to get paid, the company said.
CEO Dave Davis said the airline’s previous Chapter 11 petition focused on reducing debt and raising capital, and since exiting that process in March, “it has become clear that there is much more work to be done and many more tools are available to best position Spirit for the future.”
Flight attendants, meanwhile, were warned by union leaders to “prepare for all possible scenarios.”
“We are being direct because even as we have many ways to fight because of our union, we also want to get you the truth about the situation at our airline and how each of us can take actions to protect and prepare ourselves for any challenge,” the Association of Flight Attendants said Friday in a letter to its members.
The airline now carries $2.4 billion in long-term debt, most due in 2030, and reported a negative free cash flow of $1 billion at the end of the second quarter.
That included poor demand for domestic leisure travel and “uncertainties in its business operations” that the Florida company expected to continue through at least the end of 2025.
Spirit’s cost-cutting efforts continued after emerging from bankruptcy protection in March, including plans to furlough about 270 pilots and downgrade some 140 captains to first officers in the coming months.
Despite the cuts, Spirit has said it needs more cash. As a result, the company said it was considering selling off certain aircraft and real estate.
