Fleet Cuts, Market Exits, and a Leaner Spirit
Over the next ten months, Spirit will focus on trimming its fleet and paring down its route map. The airline has already announced it will abandon service in San Diego, Salt Lake City, Portland, and other cities, doubling down instead on its strongest-performing hubs.
These moves mark part of Spirit’s strategy to emerge from its second Chapter 11 in less than a year as a leaner, more sustainable airline. Once known almost exclusively for its bare-bones, ultra-low-cost model, Spirit has recently tried wooing more affluent travelers with “premium” seating options.
A Storm of Challenges Grounded Spirit
Spirit’s fresh descent into bankruptcy on Aug. 29 came less than six months after its previous Chapter 11 exit. Chief Financial Officer Fred Cromer said the filing became inevitable when its largest lessor issued a default notice on aircraft leases just days earlier.
The airline has also been battling weak passenger demand, intensified by a glut of capacity in the market. Compounding the crisis, Spirit was forced to ground 38 aircraft due to faulty geared turbofan engines manufactured by Pratt & Whitney.
These headwinds slammed Spirit’s bottom line. The airline reported just $1.02 billion in Q2 revenue—a steep 20% drop year-over-year—while listing between $1 billion and $10 billion in debt in its bankruptcy petition.
