US-based ultra-low-cost carrier Spirit Airlines has announced plans to downsize its fleet by around 100 aircraft as part of a comprehensive bankruptcy restructuring process. The company’s Chief Financial Officer, Fred Cromer, stated during a virtual meeting with creditors that the downsizing would significantly reduce operational costs and aims to build a stronger Spirit Airlines.
Currently operating 214 aircraft, the airline has filed for Chapter 11 bankruptcy protection for the second time this year due to prolonged financial difficulties. As part of the restructuring process, the closure of unprofitable routes and a contraction of operations are on the agenda. Spirit also announced that it has requested court approval to reject 87 aircraft lease agreements.
Cromer said, “This strategy will generate hundreds of millions of dollars in savings and prepare us for the future.” The company also plans to continue negotiations with lessors until 27 October. It was noted that some aircraft may be removed from the rejection list by the end of the process.
As part of the bankruptcy proceedings, Spirit Airlines has announced plans to withdraw services from several airports across the US, including Hartford and Minneapolis. About 40 routes have been suspended, while the company has received court approval to terminate 12 airport leases and 19 ground handling agreements.
Additionally, under an agreement between Spirit and lessor AerCap, the lease of 27 aircraft has been cancelled. According to the deal, AerCap will pay Spirit $150 million to resolve a dispute over another contract covering 36 Airbus aircraft, which are expected to be delivered between 2027 and 2028.
Spirit Airlines’ downsizing plan highlights the challenges faced by low-cost carriers struggling under the pressure of weak passenger demand and excess capacity in the industry.
