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March 12 (UPI) -- Spirit Airlines has completed the Chapter 11 bankruptcy process, and is "emerging as a stronger and more focused airline," chief executive Ted Christie said Wednesday. The company declared bankruptcy on Nov. 18 after poor quarterly performances. The carrier rejected repeated acquisition proposals from rival discounter Frontier Airlines and in January 2024, JetBlue's purchase plans of the rival airline were rejected by antitrust regulators
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Spirit's Plan of Reorganization was confirmed by the United States Bankruptcy Court for the Southern District of New York, with overwhelming support from a supermajority of the company's "loyalty and convertible noteholders," the company said.
The airline has received a $350 million equity investment from existing investors to support Spirit's future initiatives, "including investments to provide Guests with enhanced travel experiences and greater value," the company said in a news release.
The South Florida-based airline emerged from its financial restructuring, completing a consensual, deleveraging transaction that equitizes approximately $795 million of funded debt.
Common stock issued by Spirit Airlines was canceled. The company expects to re-list its shares on the over-the-counter market as "soon as reasonably practicable after the Effective Date of Spirit's Plan of Reorganization," the company said. The company left the New York Stock Exchange when it filed for bankruptcy.
Newly issued shares held by Spirit's new owners are expected to trade in the over-the-counter marketplace.
"We're pleased to complete our streamlined restructuring and emerge in a stronger financial position to continue our transformation and investments in the Guest experience," Christie, who will remain as CEO, said.
"Throughout this process, we've continued to make meaningful progress enhancing our product offerings, while also focusing on returning to profitability and positioning our airline for long-term success. Today, we're moving forward with our strategy to redefine low-fare travel with our new, high-value travel options."
The airline recently has added new fare bundles and cabin classes, and has eliminated most add-on fees.
Nerd Wallet noted a $26 flight might be cheap because the airline "has one of the most comprehensive a la carte pricing models of any airline. "
There are high baggage fees with only personal items, like a laptop bag or purse, allowed for free inside the plane. And passengers will pay extra for soft drinks, reserved seats, printing the boarding pass at the gate, flight changes.
In October, Spirit said it would furlough around 330 pilots early 2025, which is about 10% of its pilot workforce of 3,500.
The total number of employees is 11,000.
"I'm incredibly proud of our team members for their continued dedication to our guests and each other throughout this process," he said. "Despite the challenges we've faced as an organization, we're emerging as a stronger and more focused airline. On behalf of the executive team, I would also like to thank our outgoing board members for their contributions and invaluable service to our airline."
Christie is a member of the board along with new members possessing industry and financial leadership.
Spirit reported losing more than $1.2 billion in 2024, fueled by "higher operating expenses, including loss in disposal of assets, aircraft rent expense and salaries, wages and benefits expenses, compared to the prior year period."
But 13% lower fuel prices in one year partially offset the higher operating costs.
The company lost $448 million in 2023 and a $554 million the previous year.
Spirit Airlines ended the fourth quarter with cash and cash equivalents of $902.1 million, a slight increase of $36.8 million compared with the fourth quarter a year ago.
Spirit has 550 daily flights to 77 destinations, through the United States, the Caribbean and South America.
In terms of market share, Spirit is a 4.9%. Delta Airlines is No. 1 at 17.8%, followed by American Airlines at 17.5%, Southwest Airlines at 17.3% and United Airlines at 16.0%, according to the U.S. Bureau of Transportation statistics through November 2024.
Its main hub is Fort Lauderdale-Hollywood International Airport. Its two other major hubs: Orlando International Airport and Detroit Metropolitan Wayne County Airport.
