Spirit Airlines Reports $10.9 Million Net Loss Following Chapter 11 Emergence

Spirit Airlines, Inc. reported a net loss of $10.9 million for the Successor Period from March 13, 2025, to March 31, 2025, following its emergence from Chapter 11 bankruptcy. This contrasts sharply with a net income of $72.2 million during the Predecessor Period from January 1, 2025, to March 12, 2025, and a net loss of $142.6 million for the same period in the previous year. Operating revenues for the combined Successor and Predecessor Periods decreased by 20% to $1.01 billion, primarily due to a 20.9% drop in traffic and a 19.8% reduction in capacity, although average yield increased by 1.2%.

The company underwent significant changes during the reporting period, including the cancellation of $1.6 billion in liabilities subject to compromise as part of its reorganization plan. Spirit issued $840 million in Exit Secured Notes and established a new revolving credit facility of $275 million. The company also issued 16.1 million shares of common stock and 24.3 million warrants to creditors as part of its restructuring efforts. These actions were part of a broader strategy to stabilize the company after its bankruptcy proceedings, which began in November 2024.

Operationally, Spirit's performance indicators showed a decline, with average daily aircraft utilization dropping by 22.1% to 8.1 hours, and passenger flight segments decreasing by 18.9% to 8.77 million. The load factor fell slightly to 79.5%, down from 80.7% in the previous year. The airline's fleet consisted of 213 aircraft as of March 31, 2025, with plans for future deliveries of 53 additional Airbus A320 family aircraft through 2031. The company also recorded a significant decrease in fuel costs, which fell by 30.9% year-over-year, contributing to a reduction in overall operating expenses.

Looking ahead, Spirit Airlines anticipates ongoing challenges in the pricing environment and operational uncertainties throughout 2025. The company is focused on enhancing its liquidity and operational efficiency, with plans to implement network and product enhancements, including the introduction of its Go Comfy travel option. However, management has cautioned that achieving these goals may be contingent on market conditions and the successful execution of their strategic initiatives. The airline's ability to navigate these challenges will be critical to its recovery and future profitability.