Spirit Aviation Holdings, Inc., parent company of Spirit Airlines (Spirit), has announced significant progress in its ongoing Chapter 11 restructuring after reaching agreements in principle both with its pilots and flight attendants. The new arrangements, made with the Air Line Pilots Association (ALPA) and the Association of Flight Attendants-CWA (AFA), mark a major step towards stabilising the airline and ensuring its long-term viability.
Although still subject to formal documentation, union ratification, and court approval, the agreements outline crucial cost-saving measures designed to strengthen Spirit’s financial position. These developments come as the company continues to navigate a complex restructuring process aimed at restoring profitability and securing its future within an increasingly competitive aviation market.
As part of the new framework, Spirit’s senior leadership team has agreed to take a salary reduction equal to or greater than that of its Pilots once the tentative Pilot agreement is ratified. This move underscores management’s commitment to sharing in the sacrifices required to achieve the company’s recovery goals.
Dave Davis, President and Chief Executive Officer of Spirit Airlines, described the agreements as a reflection of the “shared commitment” between Spirit’s workforce and leadership. He praised the airline’s Pilots and Flight Attendants for their “professionalism, resilience, and unwavering dedication to safety and passengers,” noting that their cooperation has been vital in positioning Spirit for a stronger, more sustainable future.
The company estimates that the annual savings generated through these agreements will meet the target required for the next draw under its debtor-in-possession (DIP) financing. This milestone brings Spirit closer to securing the financial stability necessary to complete its restructuring and re-establish itself as a reliable, affordable carrier for American travellers in the years ahead.
