US carrier Spirit Airlines has emerged from bankruptcy protection, planning to rebrand itself as a premium airline. The Florida-based airline filed for Chapter 11 last November due to years of losses and heavy debt levels.
As part of its turnaround strategy, Spirit aims to shift focus towards more affluent travelers, estimated to generate 13% more revenue per passenger. To attract customers, the airline plans to redesign its loyalty program and enter into alliances with other carriers.
CEO Ted Christie said the new strategy will redefine low-fare travel with high-value options. The company has reduced debt by $795 million and received a $350 million equity investment to support future initiatives. Spirit’s new shares are expected to trade on the over-the-counter marketplace, with plans to relist on a stock exchange when “reasonably practicable.”
The airline rejected a $2.16 billion bid from Frontier Group last month, choosing its restructuring plan instead. Spirit’s new strategy contrasts with its previous focus on price-sensitive travelers and aims to tap into high-spending middle- and upper-income households.
However, the airline faces pressure from its workers, including the pilot union, which has asked for a credible path to restoring profitability without hurting pilots’ interests. Spirit has furloughed hundreds of pilots as part of its cost-cutting efforts.
Source: https://eu.usatoday.com/story/money/business/2025/03/13/spirit-airlines-rebrand-travelers-bankruptcy/82368086007